DOJ documents included:
For more than six years, more than 17,000 investors (collectively, the “Investors” or “Limited Partners”) in the managed private funds (or, as defined herein, the “Partnerships”) of GPB Capital Holdings, LLC (“GPB Capital”), have been waiting to receive returns of any kind on their investments.Distributions and returns of capital were abruptly halted in 2018 amidst numerous investigations of GPB Capital and its former Chief Executive Officer, David Gentile (“Gentile”), and several of his associates.The investigations led to criminal charges and convictions of Gentile, Jeffry Schneider (“Schneider”), and Jeffrey Lash (“Lash”), the commencement by the Securities and Exchange Commission (the “SEC”) of the instant enforcement action (the “Action”), and multiple other enforcement actions by state agencies.
Gentile and the other individual defendants diverted monies from Portfolio Companies to themselves through shell companies; Gentile collected millions of dollars in stipends and fees for work for which he was already otherwise being paid; Investors’ money was improperly used to enrich Gentile and his family; Gentile had a Portfolio Company purchase him a Ferrari for personal use; and Gentile received tens of millions of dollars in undisclosed acquisition fees.
David Gentile spent twelve days in prison for his crimes.
Trump II wants seniors to invest their 401(k) funds in private equity, private credit, crypto and alternatives. Here's how GPB Capital Holdings marketed the firm:
Our company is a global asset management firm. We are a private equity firm specializing in acquisition of middle market companies. We are focused on developing institutional quality, income generating solutions for investors.Who wouldn't bite on that? Even auditors got fooled and had to pay restitution.
Is Trump II making a target rich environment for his freshly pardoned friends? One could deduce that very thing.
Politicians Red & Blue love PEU and their new TechGod/CryptoBro brethren. Increasingly, more are one.
