Earlier today, in a federal court in Brooklyn, David Gentile and Jeffry Schneider were sentenced to prison for their involvement in a scheme that defrauded over 10,000 investors. Gentile, the founder and former CEO of GPB Capital, received a seven-year sentence, while Schneider, the former CEO of Ascendant Capital, was sentenced to six years. The sentencing was delivered by United States District Judge Rachel P. Kovner.
The two executives were convicted by a federal jury in August 2024 after an eight-week trial. They faced charges including securities fraud, securities fraud conspiracy, and wire fraud conspiracy. Gentile was also found guilty of wire fraud. Both individuals will face additional penalties of forfeiture and restitution at a later date.
United States Attorney Joseph Nocella Jr., representing the Eastern District of New York, announced the sentences alongside Christopher G. Raia from the FBI's New York Field Office. "The defendants built GPB Capital on a foundation of lies," stated Nocella. He emphasized that they raised $1.6 billion from investors under false pretenses and used investor capital to create an illusion of success.
Nocella extended his gratitude to various agencies for their assistance with the case: "My Office is committed to protecting the investing public and the integrity of the financial markets."
FBI Assistant Director Raia added: "For years, David Gentile and Jeffry Schneider wove a web of lies... May today’s sentencing deter anyone who seeks to greedily profit off their clients through deceitful practices."
GPB Capital was founded by Gentile in 2013 as a registered investment advisor based in New York. Ascendant Capital, led by Schneider, served as its exclusive placement agent. Together they raised approximately $1.6 billion for three funds known as GPB Holdings I, LP; GPB Holdings II, LP; and GPB Automotive Portfolio, LP.
Between 2015 and 2018, Gentile and Schneider misled investors about fund performance and distribution sources. Fraudulent performance guarantees inflated income reports for certain dealership-owned funds during this period.
Jeffrey Lash, an operating partner at GPB involved in these activities, pleaded guilty to wire fraud in 2023 and awaits sentencing.
The prosecution is being managed by Assistant U.S Attorneys Jessica K Weigel Nick M Axelrod Kate Mathews with support from Paralegal Specialists Madison Bates Allison Henry while forfeiture matters are handled by Assistant U.S Attorney Claire Kedeshian.
