GPB Capital Holdings Accused of FINRA Arbitration Claims

Several investors are suing brokerage firms for misrepresenting investment risk. GPB Capital Holdings according to investmentfraudlawyers.com. Many of these investors weren’t properly informed about the risks involved in these investments, and they suffered serious losses. Investors can file a claim against brokerage firms for negligent misrepresentation, inappropriateness, or violation state securities laws, depending on the facts. Below is a description of some of the claims that investors make against brokerage companies.

Ascendant Capital

Ascendant Capital is being accused of running a scam that deceived investors. However, it’s not limited to New York investors. Thousands of people across the nation have lost hundreds of million of dollars. The Attorney General of New York has sued this company. James claims that GPB Capital has a history of ripping off investors and committed fraud by fabricating performance guarantees backwards, falsifying financial statements, misappropriating funds assets, and making false financial statements. Investor funds were used for private plane flights, luxury trips, and payments to loved ones. Gentile, the defendant purchased a Ferrari sportscar using investor funds.

GPB and Ascendant were sued by Paycheck Protection Program Loan investors. These investments had high risks and were not subject to regulation. These investments are not very lucrative, as the SEC found that Gentile and Schneider deceived investors. Investors who lost were able to sue Ascendant Capital, GPB Capital, LLC $1.8 billionThrough their Ponzi scheme.

Gentile

The Securities and Exchange Commission is investigating David Gentile’s involvement in a Ponzi-like scheme he ran at GPB Capital. GPB raised $1.8 million in securities from investors. However, the SEC believes that up to 17,000 investors across the country were defrauded. He was charged in Brooklyn with conspiracy to commit securities fraud. Gentile is currently being investigated in several other cases.

Gentile and GPB were each brought to court by the New York Attorney General for allegedly defrauding retail investors. GPB fund investors believed they were investing with a private equity fund. But the fund members diverted investor money to cover their personal expenses. Gentile even bought a Ferrari FF FF for $355,000, but it never happened. He sold the car later, which caused investors to lose $183,000. Gentile and GPB were sued by New York’s Attorney General. The lawsuit demanded that the firm compensate its investors.

Schneider

The 2021 February 22nd, SECGentile, Lash and Schneider were accused of running a Ponzi scheme worth $1.8 billion and violating whistleblower laws when they fired Robert Rosenberg, a former employee. New York and New Jersey followed suit while Alabama, Illinois and Missouri filed lawsuits to stop GPB Capital Holdings. South Carolina filed a lawsuit in April against Gentile Lash and Schneider.

Gentile, Schneider and their general partners were responsible for the development and management of several investment funds. Although they were registered investment advisors and general partners of other investment fund, Gentile and Schneider served as investment advisors. Investors were sold the funds with promises of 8% annualized distributions, and periodic “special distributions,” of between 0.5 to 3 percent. The SEC complaint states that they deceived investors by promising high yield funds, but failing to deliver.

Ascendant Strategies

Recent SEC civil complaints against Jeffry Schneider, David Gentile and Ascendant Alternative Strategies owners, have highlighted their role in misleading investors. They were accused of violating federal securities laws by misleading investors about the compensation and fees they received from their management teams. Investors who purchased the funds were promised 8% annualized gains. However, the SEC states that the funds were deceived and that the investors lost their money.

Ponzi scheme run by Ascendant led to hundreds of investors including New Yorkers losing more than $1.85 trillion. According to the SEC. the firm promised investors profit from private equity investments made in waste management companies. Ascendant Capital and its management were investigated by the SEC and other government agencies. The SEC in Texas named GPB as the defendant in the Ascendant Capital lawsuit.

Katie Sullivan

Katie Sullivan

Katie is a digital nomad and business consultant. She has a bachelor's degree in business and has in the last 15 years in both the private and non-profit sectors. Her passion is helping people become better themselves and in turn creating better businesses. When she isn't chasing around her twin boys, she loves reading and gardening. She can be reached at [email protected]

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