Update: Court-appointed Monitor Joseph Gardemal’s report on Q4 2022. The main items we  reported on in 2022 remain unchanged:

1. Joseph Gardemal supervised the sale of $1 billion in GPB Capital Holdings assets. This cash is intended to be distributed to investors at some future date.

2. This pile of free cash apparently triggered a hysteria of greed in David Gentile in which he
attempted a coup to wrest control of GPB Capital Holdings from the court-appointed Monitor. Gentile tried to enact his coup by expanding the number of GPB managers. Gentile argued in court papers that he wanted control of the company to take over its investment strategies. Translated, we took this to mean David Gentile wanted control and access to  the $1 billion so he could collect a huge amount fees, bonuses, and other monies he feels himself entitled to as happened in the past.

3. Gentile chose as one of his new managers his Scientology pal Matt Judkin who, along with his fellow Scientologists Adolfo Quintero, John Woodruff, and Herb Zerden signed a 2006 Agreed Final Judgment and Permanent Injunction with the State of Texas. The injunction related to a mortgage foreclosure scam the Scientologists had been operating in Texas.

4. Joseph Gardemal responded by calling for GPB Capital Holdings to be placed into a court receivership. The stage is set for a legal battle between the US Securities Exchange Commission and Gentile and his managers. Scientologist and lawyer Steven Hayes filed a motion to appear pro hac vice in the case. As we noted at Tony Ortega’s Underground Bunker:

Hayes has no legal experience within the area of private equities, securities law, or white collar criminal defense. That Hayes has no experience in the big league US Federal Eastern District Court of New York reinforces my estimation that the 75-year-old Hayes is being sent to babysit Judkin and Gentile at the orders of Miscavige.

The Q4 2022 Report from Joseph Gardemal: