Secretary of State Jay Ashcroft’s Securities Division ordered David Gentile, Jeffry Schneider, Jeffrey Lash and their companies to show cause why restitution of more than $24 million should not be paid after allegedly defrauding 255 Missouri investors and tens of thousands more across the U.S.
A news release says the division alleges that between 2013 and 2018, Gentile, Schneider and Lash raised more than $1.8 billion by luring individuals to invest with misleading promises of reliable returns. The three men and their companies – GPB Capital Holdings LLC, Ascendant Capital LLC and Ascendant Alternative Strategies LLC – relied on a Ponzi-style scheme for financing, using new investors’ capital to pay returns to prior investors.
Более 17 тысяч человек обманули в схеме, похожей на Ponzi
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NEW YORK (Reuters) - The founder of a New York money manager and two associates were criminally charged on Thursday with running a $1.8 billion Ponzi-like fraud where thousands of victims were falsely promised steady returns on their investments.
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David Gentile, the chief executive of GPB Capital Holdings LLC, was accused of cheating more than 17,000 retail investors taken in by promises of consistent 8% annual returns even as the firm was hemorrhaging losses.
Authorities said Manhattan-based GPB told investors their payments would be funded by revenue from the firm’s holdings, including a group of car dealerships, when in fact a “significant” portion came from money from newer investors.
GPB Capital Founder and CEO Indicted for Alleged Fraud In a parallel action to the DOJ’s, the Securities and Exchange Commission also charged GPB and a broker/dealer that marketed its securities with running an allegedly Ponzi-like scheme that raised over $1.7 billion.
The U.S. Department of Justice announced the indictment Thursday of three individuals affiliated with GPB Capital, a New York-based private placement shop, with securities fraud, wire fraud and conspiracy in a scheme that raised over $1.7 billion from investors. GPB’s owner and CEO David Gentile, Jeffry Schneider, owner of GPB’s placement agent Ascendant Capital, and Jeffrey Lash, a former managing partner at GPB, have been arrested, each facing up to 20 years in prison.