GPB Capital Holdings Investigation Update

The White Law Group continues to investigate potential securities fraud claims against broker-dealers who recommended high-risk GPB Capital Holdings offerings to retail investors.

Criminal Trial and Convictions (June 2024) for GPB Executives

The criminal trial of senior GPB Capital executives took place in federal court in Brooklyn in June 2024. On June 12, 2024, a jury reportedly found David Gentile and Jeffry Schneider guilty on all counts related to the scheme alleged to have defrauded investors in GPB Capital private placement funds. The convictions were later reflected in official DOJ releases and press coverage of the case.

New Development: Former CEO David Gentile’s 7-Year Sentence Commuted

November 30, 2025 — 

Less than two weeks after beginning a seven-year prison sentence for $1.6 billion in securities fraud, GPB Capital founder and former CEO David Gentile had his sentence commuted by President Trump, according to multiple news outlets.

Gentile and Jeffrey Schneider (CEO of Ascendant Capital, GPB’s placement agent) were convicted in May after an eight-week jury trial. Schneider received a six-year sentence. Prosecutors alleged that the men misrepresented the performance of GPB’s private funds and used investor capital to fund monthly distributions—activity the DOJ described as a “Ponzi-like” scheme.

Reaction to the Commutation

• The commutation triggered significant media attention, with some reports indicating that a White House official disputed aspects of the government’s case.

• The official reportedly argued that GPB had disclosed to investors that distributions could come from investor capital.

• Reuters reported that the White House alleged concerns about “false testimony” at trial.

• Gentile did not receive a pardon—his conviction stands—but the prison term was eliminated.

Litigation related to GPB’s alleged Ponzi scheme continues, and the DOJ has called the convictions a warning to “would-be fraudsters.”

GPB Capital Holdings: Background and Allegations

Beginning in 2013, GPB Capital reportedly raised approximately $1.8 billion from investors through private placements sold by more than 60 broker-dealers. The investments targeted sectors including auto dealerships and waste management. Investors were drawn in by promises of high monthly yields during a low-interest-rate environment.

Returns became inconsistent by 2018, and the firm failed to file audited financials—triggering regulatory scrutiny.

A third executive, managing partner Jeffrey Lash, pleaded guilty in 2021.

Legal Proceedings and Alleged Fraud Scheme

In February 2019, the FBI raided GPB’s Manhattan offices. In 2021, the DOJ and SEC charged Gentile, Schneider, and Lash with:

• Securities fraud

• Wire fraud

• Fraud conspiracy

• Operating a Ponzi-like scheme

Authorities allege GPB executives misled investors regarding the source of distributions, which came not from profits but from new investor money. Internal communications reportedly revealed awareness of the company’s financial distress.

Investor Frustration and Ongoing Uncertainty

A key point of contention is the lack of a clear plan to distribute recovered funds, including more than $1.37 billion in assets sold under the direction of a court-appointed receiver. Investors and advisors remain concerned about the slow pace of progress.

The case has often been described as unusually complex, involving participation from dozens of broker-dealers and a tangled network of private investment entities.

GPB Capital Timeline of Key Events

August 2018 – Distributions Suspended; Sales Halted

GPB announces it is pausing fundraising and suspending redemptions while addressing financial reporting issues.

May 2019 – Financial Filings Delayed

GPB fails to produce audited financial statements for its largest funds.

June 2019 – Significant Losses Reported

GPB Holdings II value declines 25.4%; GPB Automotive Portfolio falls 39%.

July 2019 – Lawsuit Alleges “Ponzi Scheme”

Prime Automotive CEO David Rosenberg sues GPB, alleging the company used new investor money to pay returns.

February 2020 – K-1 Tax Forms Delayed

Investors in the GPB Automotive Portfolio are notified that K-1s will not be delivered by tax deadlines.

2021 – DOJ & SEC File Criminal and Civil Charges

Executives are charged with fraud, conspiracy, and misleading investors; Lash pleads guilty.

May 2024–2025 – Trials and Sentencing

Executives convicted at trial; Gentile later receives a presidential commutation of his seven-year prison term (November 2025).

Investigating Potential Claims Against Broker-Dealers

Reports indicate that while investors suffered substantial losses, financial advisors and brokerage firms earned more than $160 million in commissions, including $52.5 million from the GPB Automotive Portfolio alone.

The White Law Group has represented numerous investors involving the following GPB investments:

• Armada Waste Management LP

• GPB Holdings I & II

• GPB Automotive Portfolio

• GPB Cold Storage

• GPB NYC Development

• GPB Holdings Qualified LP

• GPB Holdings Automotive LLC

Suitability, Due Diligence & Broker Liability

Private placements like GPB Capital are high-risk, illiquid investments appropriate only for sophisticated, accredited investors.

FINRA rules require broker-dealers to:

• Perform reasonable due diligence

• Understand the investment’s risks

• Ensure suitability based on the investor’s profile

• Provide full and fair disclosure

If a broker sells an unsuitable investment or fails to disclose risks, the firm may be liable for losses in FINRA arbitration.

Class Action vs. Individual FINRA Arbitration

For many investors, individual FINRA arbitration may offer a better recovery path—especially when losses exceed $100,000. Class actions often benefit those with smaller individual claims.

Hiring a Securities Attorney

If you invested in a GPB Capital Holdings offering at the advice of your broker and suffered losses, the securities attorneys at The White Law Group may be able to help.

For a free consultation, please call 1-888-637-5510.

The White Law Group, LLC is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.