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Non-public placements like GPB are imagined to be offered to rich or accredited traders, who, the reasoning goes, can soak up any losses from excessive danger and illiquid investments. In actuality, most of the 4,000 seniors who invested within the GPB partnerships probably may inform a distinct story and are hurting as a result of they don’t have any entry to funds and have seen no return on their funding for greater than half a decade.
The GPB traders haven’t seen a nickel of distributions for greater than 5 years and have primarily been lifeless within the water since 2018. That’s when the corporate, brainchild of Lengthy Island accountant David Gentile, didn’t file audited monetary statements on its largest funds, an enormous purple flag for monetary advisors and securities regulators. Accountants and auditors resigned, and within the winter of 2019, the agency’s places of work had been raided by the FBI.
In different phrases, GPB was a agency based by an accountant, Gentile, who couldn’t do the accounting.
In 2021, Gentile and different executives had been charged with fraud by the Justice Division; their trial is to begin in June in federal court docket in Brooklyn.
GPB promised to pay distributions, suppose dividends, to traders from funds from operations of the portfolio firms it owned in 5 separate restricted partnerships. The companies GPB acquired to kick off the investor returns included auto sellers, rubbish amassing companies and well being care firms.
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