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Articles Posted in Ponzi Schemes

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On February 4, 2021, the SEC charged GPB Capital Holdings, its officials, and other affiliated entities with making material misrepresentations, violating whistleblower laws, and defrauding over 17,000 investors in a $1.7 billion Ponzi-like scheme. In the complaint, the SEC alleges that David Gentile, GPB Capital’s owner and CEO, and Jeffry Schneider, owner of a GPB affiliate called Ascendant Capital, falsely told investors that an 8% annualized distribution payment came exclusively from monies generated by the company’s portfolio companies. In reality, the distribution came from new investor contributions. The SEC also charged Jeffrey Lash, another GPB exec, with manipulating financial statements to further the Ponzi scheme and allege that GPB violated whistleblower laws by including language in its contracts that impeded potential whistleblowers and retaliated against a known whistleblower.On February 4, 2021, the SEC charged GPB Capital Holdings, its officials, and other affiliated entities with making material misrepresentations, violating whistleblower laws, and defrauding over 17,000 investors in a $1.7 billion Ponzi-like scheme. Continue reading ›

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Investors filed multiple Financial Industry Regulatory Authority (FINRA) arbitration claims against stockbrokers at multiple different brokerage firms. The claims involve allegations of unsuitable investments in GPB Capital Holdings, and negligent due diligence resulting in millions of damages. GPB And Advisor Group In February of 2020, Advisor Group acquired Ladenburg Thalmann and its subsidiaries, including Triad Advisors. Advisor Group already owned SagePoint Financial, Royal Alliance, and other brokerage firms. So with the mounting claims against GBP Capital, Advisor Group now has become one of the many investment firms facing allegations of negligence, misconduct, or fraud by its financial advisors and stockbrokers. Triad Advisors is one of over 60 broker-dealers that sold GPB Capital Holdings investments to its customers. On February 4, 2021, the U.S. Department of Justice and the SEC charged GPB Capital Holdings, its officials, and other affiliated entities with making material misrepresentations, violating whistleblower laws, and defrauding over 17,000 investors in a $1.7 billion Ponzi-like scheme. Investors have filed multiple Financial Industry Regulatory Authority (FINRA) arbitration claims against stockbrokers at multiple different brokerage firms. The claims involve allegations of unsuitable investments in GPB Capital Holdings, and negligent due diligence resulting in millions of damages. Continue reading ›

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With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry. In that case, it is estimated that broker-dealers sold GPB to over 2,000 investors, with losses of up to $1.8 billion. Although investors understand the risks associated with investing, they often aren’t aware of the many avenues available to them to recover their losses if they occurred due to negligence, misconduct, or fraud by financial advisors and stockbrokers. If this is you, here’s what you need to know to recoup your GPB investments. FINRA Mediation Or Arbitration One of the most common pathways to recoup an investment is through a FINRA mediation or arbitration. The Financial Industry Regulatory Authority (“FINRA”) is a government authorized non-profit designed to protect investors by overseeing and regulating U.S. broker-dealers. The government authorizes both the SEC and FINRA to take enforcement actions against broker-dealers who violate the law, including granting monetary awards to investors.With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry. Contact Silver Law Group to recover your GPB Losses. Continue reading ›

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No one enjoys losing money on investments. Still, investors can feel even worse if they lost money because they invested in funds that their financial advisor or brokerage firm didn’t properly vet. Investors in GPB Capital Holdings may find that they are facing this exact situation. In parallel actions filed on February 4, 2021, the SEC and the United States Department of Justice charged GPB Capital Holdings, its officials, and other affiliated entities with making material misrepresentations, violating whistleblower laws, and defrauding over 17,000 investors in a $1.7 billion Ponzi-like scheme that lasted more than 4 years. Though the loss of money alone isn’t an indication of bad financial advice, when it comes to investments in GPB, there may be other indications that advisors failed to uphold their fiduciary duties. No one enjoys losing money on investments. Still, investors can feel even worse if they lost money because they invested in funds that their financial advisor or brokerage firm didn’t properly vet. Investors in GPB Capital Holdings may find that they are facing this exact situation. In parallel actions filed on February 4, 2021, the SEC and the United States Department of Justice charged GPB Capital Holdings, its officials, and other affiliated entities with making material misrepresentations, violating whistleblower laws, and defrauding over 17,000 investors in a $1.7 billion Ponzi-like scheme that lasted more than 4 years. Continue reading ›

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On February 4, 2021, a federal indictment was unsealed against three GPB Capital insiders: David Gentile, Jeffry Schneider, and Jeffrey Lash. Gentile was the founder, owner, and CEO of GPB Capital, Schneider was the CEO of Ascendant Capital, the placement agent for GPB, and Lash was a managing partner of GPB Capital primarily responsible for overseeing GPB’s investments in car dealerships. GPB Capital is a New York-based alternative asset manager that raised over $1.8 billion dollars from investors across the United States.  GPB offered a series of limited partnership deals, including: GPB Holdings, LP; GPB Holdings II, LP; GPB Automotive Portfolio, LP; GPB Waste Management, LP, and GPB Cold Storage, LP.  GPB was sold by a vast network of brokerage firms who promised protection of principal investment, a steady dividend payment, and major upside if GPB went public. GPB’s funds have not paid any distributions since 2018, have substantially declined in principal value, and are illiquid, meaning investors are stuck in these funds with no way to sell and/or recoup their losses.On February 4, 2021, a federal indictment was unsealed against three GPB Capital insiders: David Gentile, Jeffry Schneider, and Jeffrey Lash. Gentile was the founder, owner, and CEO of GPB Capital, Schneider was the CEO of Ascendant Capital, the placement agent for GPB, and Lash was a managing partner of GPB Capital primarily responsible for overseeing GPB’s investments in car dealerships. Continue reading ›

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On February 4, 2021, the Securities and Exchange Commission (SEC) announced that it charged three people and their affiliated entities with running a “Ponzi-like scheme” that raised more than $1.7 billion by selling private placements issued by alternative asset management firm GPB Capital Holdings. Silver Law Group represents investors in claims against the broker-dealers who sold GPB to investors. Claims to recover investment losses allege that the broker-dealers failed to conduct adequate due diligence on the investment, among other causes. Our securities fraud attorneys have already filed multiple FINRA arbitration claims. Silver Law Group reportedly filed the first GPB-related stockbroker arbitration claim in 2019.  Since that time, our attorneys have recovered substantial damages for investors around the country. The SEC action further demonstrates the gross misconduct allegedly at GPB and although most brokerage firms refused to sell GPB, investors have alleged that the selling brokerage firms failed to do adequate due diligence or turned a blind eye to red flags because GPB paid substantial commissions to the selling stockbrokers.On February 4, 2021, the Securities and Exchange Commission (SEC) announced that it charged three people and their affiliated entities with running a “Ponzi-like scheme” that raised more than $1.7 billion by selling private placements issued by alternative asset management firm GPB Capital Holdings. Continue reading ›

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A FINRA arbitration panel has awarded customers of Arete Wealth Management $515,000 for investment losses in risky GPB Capital Holdings private placements. The award is notable because Arete was ordered to pay $259,000 in client legal fees, which is not typical in FINRA arbitration awards. Arete Wealth Management, a broker-dealer based in Chicago with 35 offices, is known to sell high-risk alternative investments. Silver Law Group filed a FINRA arbitration claim against Arete on behalf of an elderly client who we alleged was sold unsuitable leveraged ETNs, ETFs, and non-traded REITS. Among the investments that caused our client significant losses were: American Finance Trust, Hospitality Investors Trust, and Benefit Partners Realty Trust. GPB Capital Holdings FINRA arbitration claims have been piling up against GPB Capital Holdings, a New York-based alternative asset management firm that raised $1.8 billion since its founding in 2013 by Scientologist David Gentile.A FINRA arbitration panel has awarded customers of Arete Wealth Management $515,000 for investment losses in risky GPB Capital Holdings private placements. The award is notable because Arete was ordered to pay $259,000 in client legal fees, which is not typical in FINRA arbitration awards. Continue reading ›

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Silver Law Group is investigating potential claims on behalf of victims of an alleged fraud perpetrated by Detroit, Michigan-based Viktor Gjonaj. According to a press release from the Securities and Exchange Commission (SEC), Gjonaj “allegedly defraud[ed] members of the Albanian-American community out of approximately $26.4 million, some of which he spent playing the Michigan State Lottery.” Securities And Exchange Commission Filed Civil Enforcement Complaint Against Viktor Gjonaj On January 28, 2021, the SEC filed a Complaint against Viktor Gjonaj in United Stated District Court for the Eastern District of Michigan. The Complaint states that “[t]he SEC brings this civil law enforcement action to address Defendant Viktor Gjonaj’s fraudulent offer and sale of securities to at least 24 investors . . .”  The SEC alleges that Gjonaj’s conduct violates Section 17(a) of the Securities Act as well as Section 10(b) and Rule 10b-5 of the Exchange Act. The SEC is seeking an order permanently restraining and enjoining Gjonaj from further violation of federal securities laws, an order requiring Gjonaj to pay disgorgement—his ill-gotten gains from the scheme, and civil penalties.Silver Law Group is investigating potential claims on behalf of victims of an alleged fraud perpetrated by Detroit, Michigan-based Viktor Gjonaj. According to a press release from the Securities and Exchange Commission (SEC), Gjonaj “allegedly defraud[ed] members of the Albanian-American community out of approximately $26.4 million, some of which he spent playing the Michigan State Lottery.” Continue reading ›

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Scott Silver was interviewed in a recent InvestmentNews article about Silver Law Group’s FINRA arbitration claims against the broker dealers who sold GPB Capital private placements to investors. GPB Capital Holdings is a New York-based alternative asset management firm that raised $1.8 billion since it was founded in 2013 by Scientologist David Gentile. GPB used nearly 60 broker dealers across the country to sell private placements to individual investors. The alternative asset manager used the money to invest in companies such as auto dealerships and waste management businesses. Investors were sold GPB believing that they would earn a healthy return on their investment, but GPB hasn’t paid distributions to investors since 2018. GPB is the subject of multiple government investigations and enforcement actions and has been sued by investors and accused of being a Ponzi scheme. GPB’s chief compliance officer was criminally indicted for obstruction of justice. In 2019, GPB reported that the values of its funds are down significantly, but because of its illiquidity, investors are stuck holding the investment and risking a further decline in its value.Scott Silver was interviewed in a recent InvestmentNews article about Silver Law Group’s FINRA arbitration claims against the broker dealers who sold GPB Capital private placements to investors.

GPB Capital Holdings is a New York-based alternative asset management firm that raised $1.8 billion since it was founded in 2013 by Scientologist David Gentile. GPB used nearly 60 broker dealers across the country to sell private placements to individual investors. The alternative asset manager used the money to invest in companies such as auto dealerships and waste management businesses. Continue reading ›

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