SEC Seeks to Have Court Appoint Receiver For GPB Capital

Posted on June 17th, 2022 at 12:53 PM
SEC Seeks to Have Court Appoint Receiver For GPB Capital

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has presented a plan to a New York federal judge that would place GPB Capital Holdings into receivership with the objective to return money to what the SEC terms “defrauded investors”.


The SEC submitted the plan after GPB’s sole owner David Gentile appointed three new managers for the company after a federal grand jury indicted Gentile on criminal fraud and conspiracy charges last year. Gentile additionally asked a judge in a parallel civil case to closely oversee the firm’s court-appointed monitor and restrict him from liquidating its investment funds.


However, the SEC alleges that Gentile’s actions violated the initial court order appointing that monitor. As a result, the SEC contends that breach enables the SEC to convert the monitorship into a receivership in an effort to protect investor funds. GPB already has liquidated nearly $1.2 billion worth of assets under the monitorship, which included the automotive dealerships that constituted the company’s largest investment.


GPB previously announced its intent to wind down its investment partnership and return money to investors, but none of the proceeds has yet to be distributed to fund partners.


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

Tags: eccleston law, gbp capital, sec

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.