When Sea Org Captain David Miscavige was being sued in Texas in Rathbun v. Miscavige et. al., he turned to the law office of Haynes and Boone in San Antonio. Wallace Jefferson of Haynes and Boone represented Captain Miscavige.
We previously reported on Mr. Jefferson’s many objections to his client being called “Captain Miscavige” by opposing counsel Ray Jeffrey. Mr. Jefferson’s objections seemed quite absurd and comedic because his client is, as the photo above proves, Captain David Miscavige. See our article: How Dare You Call Captain Miscavige “Captain Miscavige!
In an interesting coincidence, GPB Capital co-defendant Ascendant Alternative Strategies, LLC of New York City has turned to Joseph C. Lawlor of Haynes and Boone’s New York Office. Mr. Lawlor, an expert IP lawyer, seems an odd choice for a securities fraud lawsuit. However, in 2017 Haynes and Boone’s David Siegal scored a victory when he got all of of the criminal charges dropped against financial executive Benjamin Wey.
The dismissal was based on the FBI search warrants being overly-broad. In its corporate blog, Mr. Lawlor and other Haynes and Boone colleagues were credited with assisting Mr. Siegal in this victory. This suggests to us that Ascendant Alternative Strategies, LLC and the other GPB defendants may be staking out a strategy to attack the 2019 search warrants the FBI executed upon the offices of GPB Capital Holdings and its Five Star Waste Management component. The FBI search warrants yielded a staggering 13 million documents.
It is not out of the realm of possibility to suggest that Mr. Jefferson called his former client Captain Miscavige to tell him about Haynes and Boone’s major victory in getting all charges dropped against Benjamin Wey.
Captain David Miscavige is responsible for the entire Church of Scientology. As such, Scientologist David Gentile and the GPB civil lawsuits and criminal charges are a matter of Captain Miscavige’s concern. He is surely watching this case closely from Scientology’s Flag Land Base in Clearwater, Florida.
Defendant David Gentile is presently represented by Sandra Hanna of the Washington DC firm Bruch Hanna LLP. Hanna Bruch is a scant five minutes away from Scientology’s top lawyer and David Miscavige’s consigliere Monique Yingling’s Washington DC’s office:
Did Captain Miscavige ask his attorney Ms. Yingling about the best criminal defense lawyers for Scientology parishioner David Gentile?
Quite possibly. Monique Yingling would certainly be the right attorney for David Miscavige to ask about this rather sensitive legal matter in which the Church is entangled.
Sandra Hanna’s partner Gregory Bruch is a heavy-hitter:
Mr. Bruch served 12 years with the Securities and Exchange Commission Division of Enforcement in Washington, D.C. At the SEC, Mr. Bruch was Staff Attorney, Senior Counsel, Branch Chief and, from 1995 through 2001, Assistant Director. As Assistant Director, he supervised attorneys who investigated and prosecuted some of the SEC’s most significant financial fraud and broker-dealer cases, as well as cases involving the Foreign Corrupt Practices Act, insider trading, market manipulation and public securities offerings. Mr. Bruch also supervised the Division of Enforcement’s delinquent reporting program, which enforced the periodic reporting obligations of public companies and the beneficial ownership reporting obligations of corporate officers, directors and major shareholders. In 2000, he received the SEC’s Stanley Sporkin Award in recognition of his contributions to the SEC’s enforcement program. Prior to co-founding the firm, Mr. Bruch was a partner at Willkie Farr & Gallagher LLP, where he served on the Washington Management Committee, and at Foley & Lardner LLP, where he chaired the Securities Litigation, Enforcement & Regulation Practice.
The US Securities and Exchange Commission civil fraud lawsuit against GPB Capital Holdings was stayed today by a Federal Court. The Wall Street Journal:
Chief United States District Judge Margo K. Brodie in the U.S. District Court for the Southern District of New York in Brooklyn placed the SEC’s case on hold after Acting U.S. Attorney Seth DuCharme sought a stay. Mr. DuCharme sought the stay to preserve the secrecy of a continuing grand jury investigation and to prevent inappropriate discovery of matters in the criminal case.
The priority of the government’s criminal case against GPB Capital was to be expected. Where defendants are facing both criminal and civil trials, the civil trials are stayed exactly for reasons of discovery. Indeed, David Gentile’s fellow Scientologist Danny Masterson is seeking a stay in the civil lawsuit against him due to his pending criminal trial in which he faces multiple counts of forcible rape which, if convicted, would result in a sentence of 45-to-life.
US Attorney DuCharme’s indicated in his filing that there in a “continuing grand jury investigation” into the matter of GPB Capital Holdings. The GPB Capital Holdings case is complex and far-ranging. The grand jury needs secrecy as it conducts an examination into the complexity of the massive GPB Capital fraud.
The tremendous financial fallout from the GPB Capital case is beginning to make itself known. A report this week suggested that several Broker-Dealers that sold GPB Capital have set aside millions of dollars for anticipated legal costs to defend in cases related to GPB Capital. As Investment News reported:
Three broker-dealers under the umbrella of the Advisor Group network of firms have increased reserves for upcoming “legal and regulatory matters,” according to annual financial statements filed recently with the Securities and Exchange Commission.Of the five Advisor Group broker-dealers that have so far filed their 2020 financial statements, called Focus Reports in the industry, three, Royal Alliance Associates Inc., SagePoint Financial Inc., and FSC Securities Corp., boosted their legal reserves by as much as three times the amount of the prior year…None of the three firms that increased legal reserves specify what the pending legal and regulatory issues are, according to their Focus Reports.
Last year, Triad Advisors reported its legal woes were increasing due to sales of GPB Capital private placements, which last month was charged with fraud by the SEC and saw the arrest of three senior executives by the FBI.
Readers have asked us how many portfolio companies GPB Capital Holdings owns. While there is some game-playing going on between AUM and RAUM assets, the actual companies were listed in a recent court order in which Joe Gardemal was appointed Monitor over GPB Capital, Highline Management, and all portfolio companies.
Here are the GPB Capital portfolio companies. GPB Capital used some part of the $1.8 billion it raised from investors to purchase these companies:
EXHIBIT A (“PORTFOLIO COMPANIES”)1
35 Bypass Realty, LLC (RC Accessories)
50 Buttermilk Hollow Realty, LLC (KRAG Chevy N. Huntington)
54 Caprara Drive Realty, LLC (FX Ford/Chevy)
111 E. Highway 6 Realty, LLC (Ron Carter Autoland)
124 S Middle Neck Realty, LLC (Tower Ford)
211 Schermerhorn Development LLC
510 Sunrise Realty, LLC
750 Bridgeport Ave, LLC (Bob’s Buick GMC)
1855 Hylan Realty, LLC (Staten Island GMC)
2006 North Center Ave, Realty (KRAG Chevy Cad. Somerset)
3005 FM Realty, LLC (RC Ford/CDJR)
3200 Library Road Realty, LLC (KRAG KRAG Ford South)
3205 FM Realty, LLC (Ron Carter Chevrolet Buick GMC)
3670 W Oceanside Realty, LLC (Rockville Centre GMC)
11250 US 30 Realty, LLC (KRAG Chevy N. Huntington)
11310 Center Highway Realty, LLC (KRAG Mazda)
11331 US 30 Realty, LLC (KRAG Subaru)
11333 US 30 Realty, LLC (KRAG KRAG Mazda)
18476 Route 11 Realty, LLC (FX CDJR Watertown)
18478 US Route 11 Realty, LLC (FX Used Cars)
18493 Route 11 Realty LLC (FX VW)
18675 US Route 11 Realty, LLC (FX Kia)
18712 US Route 11 Realty, LLC (FX Used Crs)
18447 US Route 11 Realty, LLC (FX Watertown)
22010 Perry Highway Realty, LLC (KRAG Chevy Cranberry)
22030 Perry Highway Realty, LLC (KRAG Nissan)
44170 NY – 12 Realty LLC (FX CDJR Alexandria Bay)
Acquiescent Holdings, Inc.
Advent Rehabilitation, LLC
AGR Customer Service, LLC (dba EnergyCare)
AGR Group, LLC
AGR Group Nevada, LLC
AGPB Holdings, LLC
Agility Health Rehabilitation, LLC
Alexium International Group Ltd. Inc.
Aliantza Caribe Holdings, LLC
All Global Resources, LLC
Alliance Intermediate HoldCo, LLC
Alliance Physical Therapy Group, LLC dba Amor Physical Therapy, Holland Physical Therapy
Alliance Physical Therapy Partners, LLC
Ally HR Group, Inc.
Alvin Autoworld LLC (dba Ron Carter Ford/Chrysler)
AMR Auto Holdings LN, LLC
AMR Auto Holdings TH, LLC
AMR Auto Holdings TO, LLC
AMR Auto Holdings TY, LLC
AMR Auto Holdings – AC, LLC (Prime Acura)
AMR Auto Holdings – AM, LLC (Subaru Manchester)
AMR Auto Holdings – BG, LLC (Buick/GMC)
AMR Auto Holdings – BN, LLC (dba South Shore BMW)
AMR Auto Holdings – NB, LLC (dba BMW of Norwood)
AMR Auto Holdings – CH, LLC (Prime Chevrolet)
AMR Auto Holdings – FA, LLC (Ford)
AMR Auto Holdings – HNR, LLC (dba Prime Honda 128)
AMR Auto Holdings – JS, LLC (dba Prime CDJR)
AMR Auto Holdings – LC, LLC (Land Rover Cape)
AMR Auto Holdings – LH, LLC (Land Rover)
AMR Auto Holdings – MH, LLC (Mercedes Hanover)
AMR Auto Holdings – MM, LLC (Mercedes)
AMR Auto Holdings – MN, LLC (dba Prime Mazda)
AMR Auto Holdings – MINR, LLC (dba South Shore Mini)
AMR Auto Holdings-MW, LLC (Mercedes Westwood) (also dba Prime Collision Center)
AMR Auto Holdings – NC, LLC (Norwell Collision Center)
AMR Auto Holdings – PA, LLC (Porsche Audi)
AMR Auto Holdings – PO, LLC (Porsche of Westwood)
AMR Auto Holdings – SH, LLC (Prime Subaru Hyannis)
AMR Auto Holdings – SN, LLC (Subaru)
AMR Auto Holdings – SM, LLC (Subaru Manchester)
AMR Auto Holdings – VH, LLC (Volvo)
AMR Auto Holdings VWN, LLC (dba Volkswagen of Norwoood)
AMR Auto Holdings – WPWN, LLC
AMR Real Estate Holdings, LLC
Armada E&P OH, LLC (dba Buckeye Water Services)
Armada WM SLP, LLC
Armada WM Real Estate Holdings, LLC
Armada Waste Management, LP
Armada Waste Management GP, LLC
Armada Waste Management Holdings, LLC
Armada Waste MA, LLC
Armada Waste MA II, LLC (dba Sunrise Scavenger)
Armada Waste NJ, LLC
Armada Waste OH, LLC
Armada Waste OH-OH, LLC (dba Capitol Waste and Recycling Services)
Armada Waste OH-PA, LLC (dba Iron City Express)
Armada Waste VA-MD, LLC
Armada Waste VA, LLC
Armada Waste Portfolio, LLC
Arrow Physical Therapy & Rehabilitation, LLC
Automile Holdings, LLC
Automile Parent Holdings, LLC
Automile TY Holdings, LLC
AVPI Maryland LLC
Babar Enterprises, LLC (dba Excel Sports and Physical Therapy)
Back in Motion Physical Therapy, LLC
Biotex Pharma Investments II LLC
Blackhill Road Realty, LLC (KRAG Ford North Huntington)
Block 5020 Finance, LLC
Block 5020 Finance II, LLC
Boerum Hill LLC
Border Therapy Services, LLC
Cantata Health, LLC
Capstone Automotive Group, LLC
Capstone Automotive Group II, LLC
Capstone Automotive Group III LLC
Capstone Cars of Syracuse LLC (dba FX Caprara Auto Sales)
Capstone KRAG Holdings, LLC
Continuum Wellness Clinic, LLC
Dance Biopharm Holdings, Inc. & Dance Biopharm
D1 Holdings, LLC
DJD Holdings LLC
DJD Holdings 2 LLC
Duos Technology Inc.
Energy Professionals, LLC
Environmental Packing Technologies, Inc.
Erus Holdings, LLC
Franklin Rehabilitation, Inc.
FX Caprara Chevrolet Buick LLC (dba FX Caprara Chevrolet Buick)
FX Caprara CDJR of Watertown LLC (dba FX Caprara CDJR of Watertown)
FX Caprara VW, LLC (dba FX Caprara VW)
GK Brand, LLLP
GPB Auto SLP, LLC
GPB Cars 12 LLC (dba North Plainfield Nissan)
GPB Cold Storage Holdings I, LLC
GPB Cold Storage Holdings II, LLC
GPB Cold Storage Holdings III, LLC
GPB Debt Holdings II, LLC
GPB Debt Holdings III, LLC
GPB Energy Holdings, LLC
GPB Energy Holdings III, LC
GPB H2 SLP, LLC
GPB H3 SLP, LLC
GPB H II SLP, LLC
GPB HPI Holding LLC
GPB Holdings Automotive, LLC
GPB Holdings III GP, LLC
GPB IT Holdings, LLC
GPB IT Holdings II, LLC
GPB IT Holdings III, LLC
GPB Life Science Holdings, LLC
GPB NYC Development LP
GPB NYCD SLP LLC
GPB PEO Acquisition, LLC
GPB PEO Holdings, LLC
GPB Portfolio Automotive, LLC
GPB Prime Holdings, LLC
GPB Riverwalk LLC
GPB SLP, LLC
GPB Special Situations III, LLC
GPB Waste Holdings III, LLC
GPB Waste NY LLC (dba Five Star Carting, LLC)
Great Neck Ford, LLC (Tower Ford)
Greenwave Energy, LLC
Greenwave Energy Holdings, LLC
Hanover Automotive Holdings, LLC
HIS Holdings, Inc.
HPI Parent Delaware LLC
Health Prime International, LLC (HPI)
Health Prime International Maryland LLC
Health Prime Services Pvt. Ltd.
Health Prime Services Costa Rica S.R.L.
Health-Right Discoveries, Inc.
Hotel Internet Services LLC
Hyannis Automotive Holdings, LLC
Hycor Biomedical Inc.
Insightra Medical, Inc.
IP Light Inc.
Joe Morea & Sons Private Sanitation, Inc.
KRAG Chevrolet of North Huntington, LLC (dba Kenny Ross Chevrolet)
KRAG Chevrolet of Somerset, LLC (dba Kenny Ross Chevrolet Cadillac)
KRAG Ford of Adamsburg, LLC (dba Kenny Ross Ford South)
KRAG Ford of Pittsburgh, LLC (dba Kenny Ross Ford N Huntington)
KRAG Holdings, LLC
KRAG M, LLC (dba Kenny Ross Mazda)
KRAG Subaru, LLC (dba Kenny Ross Subaru)
Lash Realty LLC
Matrix PEO Holdings, LLC
MDS Medical, LLC
Medite Cancer Diagnostics, Inc.
Meta Healthcare IT Solutions, LLC
Meta Holdings, Inc.
Micro Development Services
MTECH Holdings LLC
MTF Realty, LLC
Mud Masters, LLC
NS Halo LLC
On-Demand Container, LL
Orangeburg Subaru LLC (Bill Kolb, Jr. Subaru)
Panther Physical Therapy, LLC
Peak Performance Sports and Physical Therapy, LLC
PM Waste & Rubbish Contractors, LLC
Power 3 Partners, LLC
Prime Managed Billing LLC
Project Halo Buyer, LLC
Project Halo Holdings, LLC
Pulaski Ford LLC (dba FX Caprara Ford)
Q1 Holding LLC
Quantum Energy Holdings, LLC
Quello Holdings, LLC
Rockville Center GMC LLC (dba Rockville Center)
Rehab Access, Inc.
Riverwalk Tower LLC
Riverwalk Tower Member LLC
Ron Carter Accessories, LLC
Ron Carter Autoworld LLC (dba Ron Carter Chevy Buick GMC)
Saco Auto Holdings – FLMM, LLC (Mazda, Ford Lincoln/Mercury)
Saco Auto Holdings – HN, LLC (Honda North)
Saco Auto Holdings – VW, LLC (Volkswagen)
Sales Verification Company, LLC
Sawdran, LLC (Mercedes)
Skinquarter Land, LLC
Specialists in Sports & Orthopedic Rehabilitation, LLC
Sports & Orthopedic Leaders Physical Therapy, Inc.
Staretz LLC (Hyundai)
Staten Island Buick GMC LLC
Staten Island Carting, Inc.
Surge PEO Holdings, LLC
TeamWorks Marketing, LLC
TRD Riverwalk LLC
Trinity Health MI / Saint Mary’s
U.S. Power & Gas Inc.
Utilities Marketing Group, LLC (dba AGR Group)
Utility Sales Management LLC (dba Executive Energy)
Westchester Buick GMC LLC (dba White Plains Buick GMC)
Whatcom Physical Therapy, Inc. P.S.
World CDJR LLC
World Subaru LLC
The court document in which the appointment of the Monitor and the portfolio companies are listed:GPB.Monitor.Appointment.and.Portfolio.Companies