Did You Lose Money on GPB Capital Holdings Funds?

GPB Capital Holdings was an investment advisory firm founded in 2013 by David Gentile. The firm served as the general partner for several limited partnership funds which invested in private companies in the healthcare, waste management, and automobile industries, among others.

GPB Capital suspended all distributions in 2018, and in 2024, a federal court allegedly found that the firm defrauded over 10,000 investors of more than $1 billion. If you lost money on any of the Funds listed below, contact Kurta Law for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.

GPB Capital Holdings News

According to a civil complaint filed by the SEC in 2021, GPB Capital Holdings allegedly claimed that its funds made consistent 8% annualized distributions to investors as well as “special distributions” of 0.5-3%.

Marketing firm Ascendant Capital allegedly worked with GPB Capital to market their funds to the public, including through materials that claimed that each LP’s underlying companies would fund distributions for investors.

Alleged Misrepresentations to Investors

However, the SEC alleged that GPB Capital actually funded distributions with investors’ own money to make up for the lackluster performance of their portfolios and meet the promised 8% distribution payment.

GPB Capital allegedly disguised this scheme by manipulating financial statements to mislead current and prospective investors about the supposed financial success of the underlying companies.

Alleged Misuse of Investor Funds

The SEC also alleged that David Gentile, Ascendant Capital founder Jeffry Schneider, and their respective firms failed to adequately inform investors about the acquisition fees associated with GPB Capital Holdings funds and their conflicts of interest with regard to these payments.

David Gentile and Jeffry Schneider allegedly also diverted investor money from these funds under the guise of “stipends” and fees for their work. According to a lawsuit filed by the New York Attorney General, these funds were allegedly used for luxury travel and other personal expenses.

GPB Capital Receivership

In 2021, the U.S. District Court for the Eastern District of New York appointed a monitor to oversee GPB Capital’s operations. The monitorship was converted to a receivership in 2023—creating the possibility of investors getting some of their money back as the firm’s assets are liquidated.

In 2024, David Gentile and Jeffry Schneider were convicted on counts of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud.

GPB Capital Holdings Funds

GPB Capital managed or served as general partner for the following funds.

What Can I Do If I Lost Money?

Several securities regulations prohibit fraudulent schemes and misleading statements. Section 17(a) of the Securities Act of 1933, for example, states that the following are unlawful:

(1) to employ any device, scheme, or artifice to defraud, or

(2) to obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.

Investment advisory firms like GPB Capital Holdings must register with the SEC and are required to follow federal regulations like the Securities Act of 1933. If you lost money because of an investment in a GPB Capital Holdings fund, contact an experienced investment fraud lawyer today.

Call (877) 600-0098 or email info@kurtalawfirm.com.