Earlier today, a federal court in Brooklyn sentenced David Gentile and Jeffry Schneider to prison for their involvement in a scheme that defrauded over 10,000 investors. United States District Judge Rachel P. Kovner handed down sentences of seven years for Gentile, the founder and former CEO of GPB Capital, and six years for Schneider, the former CEO of Ascendant Capital. The two were convicted by a federal jury in August 2024 on charges including securities fraud and wire fraud conspiracy.
The case was announced by Joseph Nocella Jr., United States Attorney for the Eastern District of New York, 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 approximately $1.6 billion based on false promises and used investor capital to create an illusion of success.
Nocella thanked several agencies for their assistance with the case, including the Securities and Exchange Commission and the New York City Police Department.
Raia commented on the sentencing: "For years, David Gentile and Jeffry Schneider wove a web of lies to steal more than one billion dollars from investors." He expressed hope that this outcome would deter others from similar fraudulent 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 around $1.6 billion across three funds: GPB Holdings I, LP; GPB Holdings II, LP; and GPB Automotive Portfolio, LP.
Between 2015 and 2018, Gentile and Schneider misrepresented fund performance to investors using back-dated performance guarantees executed by co-conspirator Jeffrey Lash. These guarantees falsely inflated fund income figures presented to investors.
Additionally, between August 2015 and December 2018, they misled investors about distribution sources—using investor capital rather than profits from portfolio companies to maintain payments.
Lash pleaded guilty to wire fraud in 2023 but has yet to be sentenced.
The prosecution was handled by Assistant U.S. Attorneys Jessica K. Weigel, Nick M. Axelrod, Kate Mathews with paralegal support from Madison Bates and Allison Henry. Forfeiture matters are managed by Assistant U.S. Attorney Claire Kedeshian.
David Gentile is aged 58 from Manhasset, Long Island while Jeffry Schneider is aged 56 from Austin Texas.