NY-AG v. GPB Capital Holdings, LLC

GPB Capital Holdings, LLC allegedly defrauded investors across the country out of more than $700 million through a Ponzi-like scheme that offered to pay investors generous monthly distributions they could never deliver, according to NY-AG. GPB Capital allegedly assured investors that distributions being paid were “fully covered” by the cash flow from portfolio company operations. GPB Capital allegedly created back-dated performance guarantees and falsified financial statements to generate fictitious income. GPB Capital allegedly failed to disclose numerous conflicted transactions involving related parties, as well as misappropriations of fund assets. David Gentile allegedly purchased a Ferrari sports car with investor funds.

Summary generated from official New York Attorney General press release