SEC v. GPB Capital Holdings, LLC

GPB Capital Holdings, LLC, David Gentile, and Jeffry Schneider allegedly lied to investors about the source of money used to make an annualized distribution payment to investors, according to the SEC. Investors were allegedly told that the distribution payments were paid exclusively with monies generated by GPB Capital’s portfolio companies, but GPB Capital allegedly used investor money to pay portions of the annualized distribution payments, according to the SEC. GPB Capital allegedly manipulated the financial statements to give the false appearance that the funds’ income was closer to generating sufficient income to cover the distribution payments than it was, according to the SEC. GPB Capital also allegedly violated the whistleblower provisions of the securities laws, according to the SEC.

Summary generated from official Securities and Exchange Commission press release