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

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.