US District Court Judge P. Rachel Kovner dismissed the desperate post-conviction “Hail Mary” motions made by David Gentile and Jeffry Schneider for:

1. A New Trial

2. An Acquittal 

3. David Gentile’s motion for a dismissal of his indictment based upon his allegations of prosecutorial misconduct. Schneider joined this motion. 

The document is posted at the bottom of this article. 

Judge Kovner’s Memorandum and Order is highly detailed and well worth reading. Her opening paragraph succinctly sums up this entire criminal case and post-conviction motions: 

See: Bloomberg Law article on Gentile’s motion for a new trial being dismissed.

Sentencing is scheduled for April 4, 2025 in Brooklyn. 

The presentencing report recommended 15 years for David Gentile and 13 years for Jeffry Schneider. Judge Kovner can sentence the convicted felons to the maximum 20 years specified in the sentencing guidelines.

In their legal motions, arguments, and at trial, Gentile and Schneider continue to insist that they did absolutely nothing wrong and that no investors were harmed.

One of the behaviors that makes a criminal a criminal is a lack of remorse. Gentile and Schneider have shown no remorse whatsoever. Courts take this into account along with other factors. 

Given their hubris, greed, and utter lack of remorse, we think Judge Kovner should sentence Gentile and Schneider to the maximum penalty of 20 years. 

In related news, David Gentile is facing a potential restitution order of $97 million with an additional Federal forfeiture in the tens of millions of dollars. 

Jeffry Schneider’s attorneys have objected to the proposed restitution order for him of $56 million and Federal forfeiture in the amount of $12.1 million 

Gentile and Schneider spent $75 million in legal fees on their criminal case. This was paid for by investor money per the terms and conditions of the Private Placement Memorandum (PPM) in which investors indemnify the principals of the company. These terms were upheld by the Delaware Chancery Court and the GPB Capital was ordered to pay. This proves, we think, that Gentile and Scheider were a partnership and acted as partners.

The Receiver wants to move ahead and distribute $400 million back to GPB Capital investors of the $1.1 billion that remains of $1.8 billion GPB Capital raised from investors. However, Gentile and Schneider are objecting to the distributions unless they receive a guarantee of unlimited future legal fees to proceed with their appeals. The sheer greed of these two convicted criminals is disgusting and shows, again, that they have no remorse.

Based upon their criminal convictions, we believe the Delaware Chancery Court will consider the indemnification clause in the GPB PPM null and void and will strike down Gentile and Schneider’s demands for unlimited legal fees in perpetuity. Predictably, Gentile and Schneider will lose their appeals and then will appeal to the US Supreme Court. The two want investors to pay all of their legal fees for decades ahead.

In addition to the $75 million in legal fees paid for their criminal cases, GPB Capital has paid another $75 million to fight the numerous civil cases in which Gentile, Schneider, and others were named. These civil cases were stayed pending the outcome of the criminal trial and can now move ahead. The cases include the SEC v. GPB Capital and similar lawsuits filed by eight US States Attorneys General and individual investors represented by law firms specializing in private equity fraud litigation. 

Motions Denied, Document 547: