Church of Scientology

Court Recommends GPB Capital Holdings Be Placed into Receivership

Magistrate Judge Vera Scanlon has recommended that the US Eastern District Court of New York order GPB Capital Holdings placed into Receivership immediately and a litigation  injunction be imposed.

Her recommendation further appoints Joseph Gardemal as the Receiver.

Judge Scanlon’s proposed order is posted below in PDF format. Down below the proposed order is a second PDF which shows ruling upon which she based her recommendation.

While discussing technicalities of the case, Judge Scanlon clearly ruled that David Gentile violated the Monitorship agreement when he attempted to take back control of GPB Capital by appointing his three directors and proposed to pay them salaries of up to $400,000 per year to do his bidding. This violation, in turn, allowed Monitor Gardemal to ask the court to place the firm into receivership.

The risk of allowing David Gentile and his cronies access to $1 billion in GPB Capital and to gain access to internal information poses a risk to investors and the firm itself. Indeed, GPB Capital’s acting CEO Rob Chmiel and its operating arm Highline Management consented to Receivership.

David Gentile overreached as usual and, predictably, his misdeeds caught up with him. We believe the Court will place GPB Capital Holdings into Receivership and grant the litigation injunction.

Proposed Order:

Report and Recommendation:

SEC Letter of August 2, 2023 to Judge Scanlon:



5 replies »

  1. I believe there was supposed to be a period of 14 days from the time this recommendation was submitted to offer any type of challenge. Is there any information available showing there was a challenge to the receivership recommendation?

  2. They now (Sep 8) posted Objections which seem to focus on the “harm” that will happen to them if they can’t keep using the money from the people they defrauded to pay their legal bills and also want to keep more evidence suppressed (as if it is not already overwhelming). Oh yeah, and just because one of them already plead guilty and the corporate entity agrees with the Receivership recommendation, they think the judge should not think it is very likely the SEC will prevail so Dave promises not to try to steal more money against the judges orders any more.

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