David Gentile

Facing Over $1 Billion in Damages in a Class Action Lawsuit, GPB Capital’s 32 Broker-Dealers Ask the Court to Order GPB Capital Into Receivership

Greed drove very bad decisions in GPB Capital’s Broker-Dealer network after they became addicted to the heroin of high sales commissions. Now that they have gone off the drug their fate appears to be one of utter ruin.  

Thirty-two Broker-Dealers who sold investments in GPB to investors have informed presiding  Judge Vera Scanlon that they are being sued for over $1 billion in the Kinnie Ma class action lawsuit. This case is captioned Kinnie Ma Individual Retirement Account , individually and on behalf of all others similarly situated vs. Ascendant Capital LLC, Ascendant Alternative Strategies, GPB Capital Holdings, David Gentile, Jeffry Schneider, Mark Martino, et, al.

These GPB B-D’s — who all made hefty commissions selling GPB to often older and unsophisticated investors — have also written amicus briefs to Judge Scanlon asking her to grant GPB Monitor Joseph Gardemal’s motion and place GPB Capital into receivership. Scroll down to read the briefs.

The cover letter for the two amicus briefs concedes that there are no local court rules or individual practice rules for filing these particular briefs. Nevertheless, the cover letter cites the court’s broad discretionary powers and requests Judge Scanlon to accept these amicus briefs as they add context to the case captioned SEC v. GPB Capital Holdings, LLC et al., 21-cv-00583-MKB-VMS.

Monitor Gardemal has said through his legal team that if Judge Scanlon orders GPB Capital into receivership then he will put a plan into place within 45 days to distribute the remaining $1 billion in cash to investors. The other GPB assets would also be sold off and GPB Capital would be wound up. Appallingly, monies would have to be set aside to pay for the legal expenses related to the 2024 criminal trials of David Gentile and Jeffry Schneider.

Making matters all the worse, GPB Capital’s owner and sole partner David Gentile has filed a lawsuit to regain control of the firm along with its cash and remaining assets through his nominees. These nominees are his cronies and include the laughably incompetent Scientology hustler named Matt Judkin. Gentile’s lawsuit to regain control is his last power play; however we predict it will prove to be futile.

The thirty-two GPB Broker-Dealers obviously want the receivership as the distribution of $1 billion would, they appear to believe, significantly reduce the financial damages they would face in civil trials. However, if punitive damages are awarded — and this could likely happen as the B-D’s allegedly sold GPB paper to investors while withholding crucial material facts about the significant problems that existed at GPB — then the punitive damages could be crippling.

The high commissions these BD’s earned for preferentially selling GPB paper have now coming back to haunt them. We seethe old adage at work here: Pigs get fat; hogs get slaughtered. 

Attorneys for the investors would like GPB Capital to be placed into receivership as well so that their clients can finally get some of their money back after distributions were suspended in 2018.

Judge Scanlon has certainly has her work cut out for her.

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