Additionally, the Commission accused the investment firm, Gentile, Schneider, and Lash of manipulating the financial statements of certain limited partnership funds managed by GBP Capital. The defendants allegedly created a false appearance that the funds’ were close to generating sufficient income to cover the distribution to investors.
Furthermore, the SEC alleged that GPB Capital and Ascendant Capital lied to investors about the millions of dollars in fees and other compensation received by Gentile and Schneider.
GPB Capital, Ascendant Capital, and their owners violated the antifraud provisions of the Securities Act of 1933 and the Securities and Exchange Act of 1934. The investment adviser also violated the whistleblower provisions of the securities laws by including language in its termination and separation agreements that prohibits individuals from reporting to the Commission. Lash aided and abetted those violations, according to the SEC.
The SEC is committed to protecting investors and whistleblowers
In a statement, SEC New York Regional Officer Director Richard Best said, As alleged in our complaint, the defendants told investors that they would be paid distributions from profits of the portfolio companies when, in reality, many of the payments were being made from the investors’ own funds. This action shows our continued pursuit of those who deceive investors and conceal their misconduct to reap profits for themselves.”
