Friday, March 5, 2021

GPB Capital Holdings

The US Securities and Exchange Commission charged GPB Capital Holdings and three executives with defrauding over 17,000 retail investors in a Ponzi scheme that raised over $1.7bn. David Gentile, CEO, Jeffry Schneider and Jeffrey Lash are accused of falsifying financial statements and creating back-dated performance guarantees to show income that did not exist. Gentile bought a Ferrari with investor funds.
Investor funds were spent on private planes, luxury vacations and millions funneled into personal bank accounts.
Scientologist-owned GPB Capital Holding’s former Chief Compliance Officer Michael Cohn is on trial. While working as an examiner in the compliance section of the SEC, Cohn leaked details of the criminal investigation to GPB’s executives, including Scientologist David Gentile.
Between 2017 and 2019, companies controlled by members of Scientology bought about 100 downtown Tampa Bay properties for $103m. Where the cash came from isn't clear.