The Founder and Former CEO of GPB Capital Now Wants GPB Capital to Pay Legal Fees to Defend Him Against Criminal and Civil Fraud Charges

David Gentile, the disgraced founder and former CEO of GPB Capital Holdings LLC, has sued GPB Capital. Mr. Gentile seeks to make GPB Capital, which an independent court-appointed monitor is now overseeing, cover the legal costs for his defense against criminal and civil securities fraud.

In February 2021, Mr. Gentile was criminally charged with securities fraud, wire fraud, and conspiracy in federal court. The criminal complaint alleged that Mr. Gentile, among others, engaged in a scheme to defraud investors by misrepresenting the source of funds used to make monthly distributions to investors and the amount of revenue generated by two of GPB’s investment funds, GPB Holdings, LP, and GPB Automotive Portfolio, LP.

Separately, 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.

The SEC’s fraud case has been put on hold pending the outcome of related criminal fraud cases against GPB founder David Gentile and two others.

Despite being accused of running a Ponzi-like scheme when he was running GPB Capital, Mr. Gentile filed a legal action in Delaware Chancery Court to compel GPB Capital to pay over $755,000 that he owes to lawyers who are defending him in the criminal and civil actions. The legal fees and expenses are for work already performed by Mr. Gentile’s lawyers. They do not include future legal expenses that Mr. Gentile will incur to defend himself in the impending criminal trial and numerous civil litigations.

Separately, 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 2018. Worse, their investments remain illiquid, as there is no secondary market to sell their units.

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.

See Also: GPB Investors Have Won Monetary Awards in 10 of 11 Arbitration Cases This Past Year

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.

GPB Capital, an alternative asset management firm, sold unregistered and high commission limited partnership interests through independent broker-dealers and investment advisers who would, in turn, sell the GPB Funds to their retail investors. There are serious concerns that broker-dealers may have failed to conduct reasonable due diligence about the GPB Funds and GPB Capital.

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, or toll-free at (855) 430-4010 for a free and confidential consultation and review of your legal rights.

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