**Update: June 17, 2022** The SEC and GPB’s court-appointed monitor have submitted court filings recommending that GPB Capital Holdings LLC be placed in receivership to prevent GPB founder and owner David Gentile from reasserting control over the firm that has been accused of running a Ponzi-like scheme by regulators. Joseph Gardemal, the GPB court-appointed monitor, said in a court filing that a receiver would reduce the financial drain from a management arrangement set up by Mr. Gentile before he resigned in early 2021 after being charged with fraud. Mr. Gardmal said that, without a receivership, said investors might wait many more years for any return of their invested capital. According to the to court filings, GPB management has been unable to formulate a distribution proposal, he said.
GPB Capital investors are encouraged to contact securities arbitration law firm Iorio Altamirano LLP to review their legal rights and options.
SEC to Seek Receivership for GPB Capital
According to news reports, the Securities and Exchange Commission (SEC) will seek to place GPB Capital Holdings LLC into receivership to return money to “defrauded investors.” The SEC is said to be prepared to present the plan to a federal judge in response to GPB founder David Gentile’s appointment of three new managers for the firm last month. GPB Capital is currently operating under a court-appointed monitor tasked with overseeing the firm’s assets and preventing it from taking actions that would harm investors.
The SEC alleges that the GPB founder’s actions undermine the court’s authority. Specifically, the SEC alleges that the move is meant to seize control of GPB Capital and its investment funds. “Through his actions of recent days, [Mr.] Gentile appears intent on seizing the controls of GPB Capital Holdings LLC and its investment funds, including their respective bank accounts, which hold nearly $1 billion that is earmarked for the victims of his fraud.” The SEC further stated that Mr. Gentile was trying to “usurp the court’s authority over the monitorship.”
In a June 2 letter to the U.S. District Judge who is presiding over the civil fraud case against GPB in the U.S. District Court for the Eastern District of New York, the SEC argued that Mr. Gentile’s actions violated the court order appointing a monitor to oversee the firm and that the violation represented a material breach in that order that permits the agency to convert the monitorship to a receivership to protect investor assets.
The SEC further stated that most of GPB’s assets, “all of which belong to investors defrauded by Gentile,” have been liquidated and that “It is time to get money back to investors” through a court-supervised receivership.
Thousands of investors are still waiting for news about how the GPB funds will be distributed. The timeline of when potential distributions may be made and the amounts paid remains uncertain.
New York securities arbitration law firm Iorio Altamirano LLP continues to investigate and evaluate potential claims for investors who have purchased GPB Automotive Portfolio, LP, GPB Holdings, LP, GPB Holdings II, LP, GPB Waste Management, LP, or GPB Cold Storage, LP.
GPB Capital investors are encouraged to contact Iorio Altamirano LLP for a free and confidential consultation and to review their legal rights. Iorio Altamirano LLP has represented numerous GPB investors in recovering losses.
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What Can GPB Investors Do?
GPB Capital investors should immediately contact a securities arbitration law firm to review their legal rights.
Investors who have purchased GPB Automotive, GPB Holdings, GPB Holdings II, or GPB Waste Management through a broker or brokerage firm have successfully recovered investment losses by filing securities arbitration claims.
Iorio Altamirano LLP is a national securities arbitration law firm based in New York, NY. The law firm pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
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 to recover your losses. We generally represent clients on a contingency fee basis. If we do not obtain a recovery, you do not owe us a legal fee.