June 2020: David Gentile, sole manager of GPB Capital Holdings, had GPBs Chief Compliance Officer Aileen Doherty file the SEC-required Form ADV on June 30, 2020. 4.

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{ "@type": "Question", "name": "What Should GPB Capital Investors Do? The Monitor says: "Based on the results of the work that my team has performed over the past 60 days, and following consultations with the .

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2019-0071-SG). GPB serves as general partner and/or manager for various companies (each, a Company, and collectively, the Companies) which do not meet the definition of investment company and thus will not register under the Investment Company Act of 1940, as amended (the 1940 Act) and whose fund interests (Interests) are not registered under the Securities Act of 1933, as amended (the 1933 Act). Last year GPB Capital Holdings plunged from $1.8 billion to $1.1 billion Regulatory Assets Under Management. Official websites use .gov Kevin Westfall originally stepped in to replace David Rosenberg who was fired as CEO of Prime Automotive by GPB Capital. GPB Capital Holdings (?GPB?) For brokers and financial advisors with a strong financial incentive to recommend clients invest in GPB, the question is often whether the broker-dealer firm properly and adequately reviewed the investment, properly approved it as a potential new product and whether or not the individual financial advisor performed his or her due diligence properly to determine that the investment was suitable at the time it was recommended. It has been reported that the Securities and Exchange Commission (SEC) launched an investigation. Readers can scroll down to the bottom of this article to read the Managed Funds Associations short precis on understanding RAUM. GPB is under investigation by the Financial Regulatory Authority (FINRA), the United States Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and several states and/or local regulatory agencies (in Massachusetts and New York, and perhaps others as well). The defendants were arrested today, and Gentile will appear this afternoon in federal court in Boston, Massachusetts, Schneider will appear in federal court in Austin, Texas, and Lash in federal court in Fort Myers, Florida. Thus, the tragedy of the GPB situation for investors is that theyre reduced to hoping that this is merely massive incompetence and not fraud, because if its fraud, then they will be subject to more financial distress via clawback rules than they already have been. U.S. Attorney's Office, Eastern District of New York, The Defendants Allegedly Misrepresented GPBs Performance and Paid Distributions with Investor Funds, Securities, Commodities, & Investment Fraud, GPB Capital Founder and CEO Among Three Individuals Indicted in Private Equity Investment Fraud, Nigerian National Pleads Guilty to Multi-Million Dollar Fraud Schemes and Money Laundering, Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal Chahine, Ozy Media and Its Founder Carlos Watson Indicted in a Years-Long Multi-Million Dollar Fraud Scheme, GPB Capital Founder and CEO Among Three Individuals Indicted In Private Equity Investment Fraud. GPB Capital paid Ascendant Alternative Strategies and Ascendant Capital millions of dollars in connection with marketing GPB Capital funds and in connection with acquisitions made by GPB Capital. Page 1 of 1. Does Your Religion Pay You Commissions? GPB Capital has many hundreds of bank accounts under its purview. This site uses cookies. July 2019: We reported on GPB Capital Holdings staggering $700 million loss across all of its funds. }}
Scientology Fair Game: Cult Leader David Miscavige Orders Attacks on Marc Headley and His Business, US Federal Prosecutor Now Investigating Retired LAPD Cop & Scientology Pal Captain Cory Palka for Corruption, Subpoena-Evader and Thug Life Scientology Leader David Miscavige Served a Subpoena by a US Federal Court on Valentines Day 2023, Scientologist David Gentile Goes Down in Flames in the Pretrial Phase of His US Federal Criminal Case. A more recent docket listing may be available from PACER . Despite these declines and negative events, many financial advisors continue to try to tell a positive story but based what facts or evidence, its unclear. Invest in GPB? Of course, one can easily see the highly negative results David Miscavige and the Church of Scientology have produced by adherence to Hubbards policies. Last summer GPB Capital Holdings announced that it would not be providing Schedule Cs and required tax documents for investors. Highline Management, Inc. (Highline) was formed in January 2020 to assume the day to day duties and responsibilities of GPB with respect to the management of the business affairs, operations and financial reporting of the various limited partnerships sponsored by GPB as well as the Portfolio Companies. This leads us to ask if a career car guy like Tom Hawkins is up to the task of managing a third-party valuation firm as it attempts to value GPBs assets across a wide range of divergent portfolio companies such as biotech, cold storage, and healthcare software. Later in June 2019, GPB informed investors that updated valuations had decreased even further, some by another -25%. Our attorneys are available as public service to review your investment accounts and counsel you, and answer your questions at no charge. In June 2019, National Financial Services, one of the largest clearing firms in the United States, reportedly removed GPB from its platform and gave clients only 90 days to move those investments to another custodian firm. The promise was (IIRC) 8% per month, in other words 96% per year, in other other words, doubling your investment every year. Investors have seen GPB raided by the FBI, investigations by FINRA, Ponzi scheme allegations, and many more allegations raise serious concerns. Fax Line: 718-254-7508. Jeffrey Schneider, GPBs placement agent Ascendant Capital, David Gentile, and Jeffrey Lash, both executives of GPB, have been charged with wire fraud, securities fraud, and conspiracy against 17,000 investors. Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges. SSEK Law Firm has filed stockbroker fraud claims against firms such as Kalos Capital, Arkadios Capital, Money Concepts Capital, Ameriprise, Triad Advisors, and many others on behalf of investors who purchased private placements in one of GPB Capital Holdings many funds. The SEC has filed documents in the U.S. District Court for the Eastern District of New York arguing that an independent monitor be appointed to oversee GPB Capital Holdings after earlier this month the SEC charged GPB Capital and three of its executives with operating a Ponzi-like scheme that raised . The company had been tasked with auditing one of the GPB private placement funds, Armada Waste Management. David Gentile Sues Shareholders for $755,038.00 In Professional Fees On December 20, 2021, David Gentile filed a complaint in Delaware Chancery Court against GPB Capital Holdings as well as several related entities, including GPB Automotive Portfolio, GPB Waste Management and GPB Cold Storage. In truth, a significant portion of GPBs distributions were paid directly from investor funds. GPB excludes the value of the assets in its holding companies in its RAUM. As we allege today, however, this was all a lie. Brooklyn NY 11201, Telephone: 718-254-7000

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Often, the customers who bought them were retirees or other retail investors for whom they were unsuitable. This business model isn't usually affected by broad stock market swings. %%EOF

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GPB has been unable to provide a final asset under management figure for the year ending December 31, 2019. GPB Capital Holdings at the end of June reported a sharp decline in its regulatory assets under management over an 18-month period and several changes in management and financial oversight. The ponzi scheme allegations are for all the products. A .gov website belongs to an official government organization in the United States. The company is a New York based alternative asset management firm that is believed to have raised 1.8 billion dollars in capital for several funds. No third party would want to sign off on anything given the deliberate complexity and dishonesty of a firm such as GPB Capital. GPB Capital Holdings is classed as an Investment Adviser. This means it has to fill out Form ADV. "acceptedAnswer": { "@type": "Answer",
Ch. It is alleged that GPB Capital Holdings tried to cover up the scheme, and its an inevitable failure by telling investors that they would receive continuous returns amounting to 8 percent of their initial investment. The only problem is that both car dealerships and garbage haulers had already been through a wave of consolidation 20-30 years ago, and they were rolled up by really smart guys who continue to look for good acquistion candidates and have the cash in hand to snag them. After over a year, investors are still left asking what were those perceived risks and what exactly does it mean to investors if they fell outside of the auditors internal risk tolerance? Scientology Does! %PDF-1.5 % Thats pretty stupid but is not necessarily criminal collecting money from investors, charging them 8% to 11% commissions, then keeping the money in a money market account and just handing it back as distributions, to be taxed again is incredibly dumb, but it may or may not be a crime depending on the precise details. However, thats less likely than that either the GPB management was hopelessly incompetent, vastly overpaying for assets that really werent worth a lot, or that the whole thing was a willful fraud from the beginning.

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Scientology Fair Game: Cult Leader David Miscavige Orders Attacks on Marc Headley and His Business, US Federal Prosecutor Now Investigating Retired LAPD Cop & Scientology Pal Captain Cory Palka for Corruption, Subpoena-Evader and Thug Life Scientology Leader David Miscavige Served a Subpoena by a US Federal Court on Valentines Day 2023, Scientologist David Gentile Goes Down in Flames in the Pretrial Phase of His US Federal Criminal Case. GPB Capital SEC Monitor Update as of November 2021 In November 2021, the Court-appointed monitor submitted its quarterly report. First, be aware that an investor has a limited time window to recover losses. In March 2017, Ascendant Alternative Strategies registered as a broker-dealer with the Securities & Exchange Commission and FINRA. hb``` "ABsCFH*A(331cXkX!Y[4#0 8+CU }, GPB policy requires the use of a valuation provider to support its Valuation Committee in determining appropriate valuation and assets under management.

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The only number GPB offers in its latest Form ADV is $238,637,198 RAUM. GPB Capital Holdings, LLC, a Delaware limited liability company ("GPB" or the "Manager"), is a New York-based middle-market acquisition and operations firm whose principals are experienced financial, management and accounting professionals with several decades of combined private investment and acquisitions experience. However, in GPBs 2018 Part 2A ADV a/k/a The Brochure the company states (emphasis ours): GPB Capital Holdings, LLC, a Delaware limited liability company (GPB or the Manager), is a New York-based middle-market acquisition and operations firm whose principals are experienced financial, management and accounting professionals with several decades of combined private investment and acquisitions experience. HQ Phone (212) 235-2650 Company GPB Capital Rob Chmiel Current Workplace GPB Capital Location 535 W 24th St Fl 6, New York, New York, 10011, United States Description Read More Industry Venture Capital & Private Equity Finance Discover more about GPB Capital Org Chart - GPB Capital Rob Chmiel Interim Chief Executive Officer Phone Email Phone Email Some of GPB Capitals funds jointly own portfolio companies, like the Prime Automotive Group. Notably missing from the list of GPB executives is Evan Myrianthopoulos, the long-time head of Debt Strategies at the firm. There are potential statute of limitations, and potential FINRA customer dispute resolution rules, including a potential six-year eligibility rule. Highline, which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with BPOC. This site uses Akismet to reduce spam. For over 3 years now, GPB Capital investors have been getting more and more bad news. How many securities arbitration cases have you actually tried during the past 30 years?

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Has your financial advisor contacted you to review the investment holdings and discuss the status after this additionally reported decrease in value (as reported by the sponsor) or to share with you that the National Financial Services and other custodian providers are removing GPB Funds from their platform? This is due to the fact that GPB disclosed in its latest ADV that it was unable to hire a third-party Valuation Service Provider in 2019. ],

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That is a 45.2% plunge. We have over 50 years of experience and a 95% success rate. hbbd```b``: "ZO,` "`63 3(%$cH 1' gT#30` =EI The allegation is that he shared that information with GPB executives and thereby acted to obstruct justice. A large number of them have filed lawsuits (FINRA) to recover losses. GPB investors. Naive fund managers who dont know their industry were potentially likely to overpay significantly chasing this dream. Michael Emanuel replaces former GPB CCO Michael Cohn. Financial advisors and brokers recommending GPB investments to clients also had a duty to continue to monitor these investments as the information above has come to light. Xenu Who? This is an outrage. The company is a New York-based alternative asset management firm that is believed to have raised 1.8 billion dollars in capital for several funds. Share sensitive information only on official, secure websites. Our securities fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have spent nearly two years investigating GPB Capital over allegations that it ran a $1.8B Ponzi scam. Industries Financial Services Company size 11-50 employees Headquarters New York, NY Type Privately Held Founded 2020 Locations. GPB told prospective investors that it would purchase, among other assets, income-producing auto dealerships and waste management businesses with capital from investors, promising them 8% returns . As an investor, you may want to begin by reviewing the basic information and records that you have in your . The complaint alleges that a majority of the $1.8 billion GPB generated went into the companys owners/principles. Myrianthopoulos was previously employed as CFO at Soligenix Inc. (formerly named Dor Biopharma). Left unexplained in the Form ADV is how Health Prime, a GPB Capital portfolio company, is now owned by Mike Frosts Austin Lake Technologies. VIDEO: Finally, Scientific Proof that Scientologys Body Thetans Cannot Exist. Mark Martinos Ascendant Alternative Strategies website has been disabled and is non-operational at this writing. Date of Report (Date of earliest event reported): June 30, 2022. For the last two years, GPB Capital Holdings investors have received a continuous flow of bad news about their investments, and Haselkorn & Thibaut has filed a GPB Capital lawsuit has filed numerous GPB Capital lawsuits (in the form of FINRA arbitration claims) nationwide for investors in an effort to successfully assist those investors in recovering their losses and damages. This Office is committed to ensuring honesty and integrity in the management of investment funds.. Some of the information in this new brochure is astonishing. Moreover, the property on which many dealerships sit is owned by separate companies under the GPB Capital umbrella. GPB Capital Holdings and Oestreicher Properties Inc. are partners in the 211 Schermerhorn Street project on Boerum Hill in Brooklyn. Jeffry Schneiders Ascendant Capital website has been disabled and is non-operational at this writing. For example, GPB admits it is not fully in compliance with the reporting requirements of the 1934 Securities Exchange Act; the 1940 Act; and Sarbanes-Oxley. As alleged, the defendants misrepresented the holdings of GPB Capital through deceptive marketing practices, luring investors with promises of monthly distributions that would be covered by funds from the investments and not drawn from underlying invested capital. That is a 45.2% plunge. Plaintiff: Kinnie Ma Individual Retirement Account, Karen Loch, Victor Wade Individual Retirement Account, Shirley Stone Living Trust, dated January 9, 1992, as amended May 24, 2005, Jeffery S. Gramm Individual Retirement Account, Dean Crooks, Robert A. Welcome to ComplianceWeek.com. Last month the SEC ordered GPB Capital Holdings into receivership to help return investors funds. This closing completes the purchase of substantially all the assets, including real estate, of 27 Prime Automotive Group dealerships and three collision centers, which was announced in September 2021. Professional firms do not engage in this type of activity. Any proposed material corporate transactions by GPB and/or Highline Management, Inc. ("Highline"), the GPB Funds or the Portfolio Companies, or any other proposed material corporate transactions as the Monitor may, in the Monitor's sole . Many of the investments were private placements. Armada Waste Management: 2Q 2019 Fair Market Value is $33.3 million, or 20.5% of the Net Capital Contributions, a decline from 4Q 2018 Fair Market Value of $53.4 million, or 32.7% of the Net Capital Contributions. Highline Capital Management, L.P. operates as an investment management firm.

}, National Investment Fraud Lawyers - No Recovery, No Fee -Call Us 1-800-856-3352, Investment Fraud Lawyers | Financial Advisor Fraud | SEC & FINRA Attorneys, Offices in Florida, New York, Arizona, Texas & North Carolina, Copyright 2023 Investment Fraud Lawyers, Call Now for a FREE Consultation 1-800-856-3352, Haselkorn and Thibaut, InvestmentFraudLawyers.com, specialize in fighting for investors nationwide and have offices in Florida, New York, North Carolina, Arizona, and Texas.

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