After he was criminally charged in 2021 for several felonies related to his avaricious $1.7 billion Ponzi-like scheming, David Gentile voluntarily resigned as the CEO of GPB Capital Holdings. Although he resigned, Gentile remained the sole owner of GPB Capital.

David Gentile found himself in the unaccustomed position of other miscreants who own companies over which they have no control. This is a bad place to be for a criminally-indicted control freak. The paranoia and rage soon begins to consume such people when they are forced to stay home and manically obsess over their enormous legal problems while fending off dark and foreboding visions of what life in prison might be like.

Coincident with Gentile’s resignation, the US Federal Court appointed a Monitor to oversee GPB’s daily operations and thereby prevent any further losses to the investors. When he stepped down, Gentile appointed GPB Capital’s CFO Rob Chmiel to serve as the new CEO. The Monitor and the new CEO moved Gentile even further away from having any say in GPB Capital. This is particularly true as the independent third-party monitor possessed the power to approve or deny all decisions and spending of any consequence.

Following Gentile’s departure, CEO Chmiel, with the approval of the Monitor Joseph Gardemal, sold GPB Capital’s impressive Automotive Portfolio of car dealerships for $880 million. This sale raised GPB Capital’s cash reserve to a reported $1 billion.

With $1 billion in cash just waiting to spent, David Gentile launched his infamous and quite brazen 2022 Memorial Day Coup Attempt  in May 2022. He sought nothing less than to seize back control of GPB Capital and its $1 billion in remaining cash.

Gentile’s corporate coup was orchestrated around his expansion of GPB’s management. He did this by appointing three of his cronies as new managers. One of these good ol’ boys was his fellow Scientologist Matt Judkin.

David Gentile wrote a letter to CEO Rob Chmiel and ordered him to accept this new change:

If these new managers were allowed to take over, Gentile would control the company and its  $1 billion in cash. He would also gain access to company confidential information he did not have access to as the former CEO.

The coup attempt was Gentile’s strategy to circumvent the court-appointed Monitor,  CEO Chmiel, and the management. Gentile’s attempted takeover created many problems for GPB Capital Holdings. For example, the firm had to pay to mount a legal defense against Gentile’s attempt to regain control of the company and its assets.

Additionally, GPB’s business relationships were harmed. Most notably, five banks would not take GPB Capital’s money after its banker Signature Bank was closed down on March 12, 2023 by New York State regulators. Other companies and firms refused to do business with GPB Capital while the threat of a criminally-indicted David Gentile taking back control of the company loomed. There was simply too much risk posed by David Gentile; who in their right mind would trust a person that is out on bail and awaiting a criminal trial on several serious felony counts?

This Memorial Day Coup caused Monitor Gardemal to declare that GPB Capital had violated the terms of the Monitorship. Accordingly, Gardemal immediately asked the court to place GPB Capital into receivership; distribute the remaining assets to the 17,000 shareholders; and dissolve the corporation.

Magistrate Judge Vera Scanlon of the US Eastern District of New York issued a Report and Recommendation (“R&R”) on July 28, 2023 in which she recommended the conversion of the GPB Capital Monitorship into a Receivership.

After reading Judge Scanlon’s Report and Recommendation, the obviously panic-stricken David Gentile filed a request for oral arguments before the court on the matter of the proposed receivership. His filing is posted below as Document 168. The essence of Gentile’s argument is that his attempt to takeover GPB Capital caused no actual harm.

Gentile told the court that his three new managers have all resigned; that none of them ever collected any of the $400,000 salaries his takeover document called for; and that GPB Capital refused to recognize their legitimacy. Gentile also, incredibly, argues to the court that his “rights to advancement” would be harmed if the company is ordered into receivership by the court.

Translated, this means that David Gentile fears that his “rights” to have his >$50,000 per month legal fees continued to be paid from investor monies could be imperiled should the firm be placed into receivership. Sociopath David Gentile argues this point in the excerpt below. He argues, as any sociopath would, that the probability of harm to himself, should GPB Capital be placed into receivership, outweighs any harm to the 17,000 investors he swindled:

The terms and conditions investors agreed to when they invested in GPB Capital included paying the legal fees of the Manager David Gentile. Jeffry Schneider’s legal fees are also paid by investors. Given these contractual terms  (which were upheld by the Delaware Chancery Court), we think Gentile’s argument is simply a bargaining ploy. Our view is that Gentile is seeking to ensure, in the event the court orders GPB Capital into receivership, that the receivership order includes a provision to set aside tens of millions of dollars into a Gentile-Schneider Legal Defense Fund to pay for their ongoing legal bills and appeals in the event they are both found guilty at criminal trial.

Our prediction is that David Gentile and Jeffry Schneider will both be found guilty at trial and sentenced to >240 months in Federal prison. Our prediction is strengthened by the guilty plea and allocution of Jeff Lash who implicated David Gentile in one count of wire fraud which carries a maximum 240 month prison sentence.

Per the terms of the investor contracts, Gentile and Schneider’s legal fees must also be paid to defend the scofflaws in the civil lawsuits filed against them by the US Securities and Exchange Commission and the eight states in which they are being sued for violations of securities law.

Gentile wants to bleed his investors dry so that, God forbid, not a penny of his own money is ever spent on either his criminal or civil legal defense. This shows just how craven David Gentile, yet another Scientology Prince of Greed, truly is. As with all sociopaths he does not care about the people he has harmed by his actions.

The US Securities Exchange Commission filed a document in response to the Gentile-Schneider Objections to Judge Scanlon’s R&R and called for Receivership. That document is posted below as Document 170.

GPB Capital itself supports Judge Scanlon’s R&R calling for the conversion of the firm into a Receivership. This filing is posted below as Document 171. GPB Capital takes Gentile to task and states that his attempted coup caused significant harm to the firm and its investors. An excerpt:

Document 168: David Gentile’s Motion for Oral Arguments: Objection to Magistrate Judge’s Report and Recommendation. Exhibit 8 is included. This exhibit is GPB Capital’s 10K for the year ending December 31, 2022:

Document 170: The US Securities Exchange Commission Response to the Gentile-Schneider Objections to Judge Scanlon’s Report and Recommendations:

Document 171: GPB Capital’s Response to the Objections of David Gentile and Jeffry Schneider and in Support of Judge Scanlon’s Report and Recommendations: