David Gentile, the disgraced founder of GPB Capital Holdings LLC, who is facing criminal and civil fraud charges, is seeking to obtain millions of dollars from GPB. Despite being accused of running a Ponzi-like scheme when he was running GPB Capital, Mr. Gentile is asking for court-supervised mediation to obtain a distribution of more than $5 million to cover his personal tax liability from last year. Meanwhile, limited partners of GPB Capital private placement funds, such as GPB Automotive Portfolio LP, have not received distributions since 2019. Worse, their investments remain illiquid, as there is no secondary market to sell their units.
Mr. Gentile claims to be “entitled to distributions” under the private equity firm’s operating agreements. He also claims that GPB Capital and its funds, including GPB Holdings, LP / GPB Holdings Qualified, LP, GPB Automotive Portfolio, LP, GPB Holdings II, LP, and GPB Waste Management, LP, are responsible for paying his legal fees. He is essentially asking investors who have been defrauded to pay his legal fees to defend him against numerous allegations of wrongdoing.
Lawyers for the U.S. Securities and Exchange Commission (SEC) argue that Mr. Gentile’s request should be denied because he does not qualify for mediation according to rules issued by the court.
The SEC has charged Mr. Gentile, GPB Capital, and related entities with running a Ponzi-like scheme that raised roughly $1.8 billion from securities issued by GPB Capital. The SEC believes that as many as 17,000 retail investors nationwide have been defrauded.
In light of the recent news, the future of GPB Automotive Portfolio, LP remains uncertain. Investors of GPB Automotive Portfolio LP are encouraged to act now and contact our securities arbitration law firm for a free consultation and review of their legal rights.
What can GPB Automotive investors do?
Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors.
Investors who purchased any of the following private placement investments issued by GPB Capital should contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights:
- GPB Holdings, LP / GPB Holdings Qualified, LP.
- GPB Automotive Portfolio, LP.
- GPB Holdings II, LP.
- GPB Waste Management, LP.
Investors who have purchased limited partnership units in these illiquid funds through a broker or brokerage firm have successfully recovered investment losses by filing securities arbitration claims.
If you lost money in the GPB funds, you might have a claim.
About Iorio Altamirano LLP
Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have nearly 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
If you have lost money on the GPB funds, contact securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at firstname.lastname@example.org, email@example.com, or toll-free at (855) 430-4010 for a free and confidential consultation and review of your legal rights.