Tr?id=566623520170033&ev=PageView&noscript=1

SEC Secures Receiver for GPB Capital Holdings Following Alleged Deceptive Practices

Posted on January 10th, 2024 at 2:20 PM
SEC Secures Receiver for GPB Capital Holdings Following Alleged Deceptive Practices

From the desk of Jim Eccleston at Eccleston Law 

The U.S. District Court for the Eastern District of New York approved the SEC's request to transition the ongoing monitorship over GPB Capital Holdings, LLC and its affiliates into a receivership.

The SEC's complaint alleged that David Gentile, GPB Capital's owner and CEO, and Jeffry Schneider, owner of GPB Capital's placement agent Ascendant Capital, deceived investors about the source of funds used for annualized distribution payments. The complaint claimed that GPB Capital used investor funds to make those payments, falsely portraying them as originating from the portfolio companies.

The SEC's complaint charged Gentile, Schneider, GPB Capital, Ascendant Alternative Strategies, Ascendant Capital, and Jeffrey Lash with various violations. The charges included antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, aiding and abetting certain violations and violations of the Investment Advisers Act of 1940. The SEC sought disgorgement of ill-gotten gains, prejudgment interest, and penalties.

The court's decision converted the monitorship into a receivership, appointing Joseph T. Gardemal III as the receiver for GPB Capital and its affiliated entities. The court's order requires the receiver to provide an accounting of receivership assets and propose a plan for asset distribution to investors within 45 days.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

1787947445 Law
August 28, 2026
SEC Accuses Goliath Ventures of $425 Million Crypto Investment Ponzi Scheme

The Securities and Exchange Commission (SEC) has filed a civil complaint against Goliath Ventures Inc.

1787852053 Law
August 27, 2026
United Capital Revives Lawsuit Against Osaic

According to AdvisorHub, United Capital Financial Advisors has revived its lawsuit against independent broker-dealer Osaic by filing an amended complaint that reframes the dispute around the alleged misuse of confidential information obtained during Osaic's unsuccessful effort to acquire the firm.

1787765850 Law
August 26, 2026
FINRA Orders WestPark Capital to Pay $520,000 Over GWG L Bond Sales

The fallout from the collapse of GWG Holdings continues to affect the broker-dealers that sold the company's illiquid L bonds.