Ponzi scheme suspects arrested

$1.8 billion scheme bilked 320 South Carolinians

Posted 2/6/21

Accused investment peddlers allegedly defrauded 320 wealthy SC investors of more than $28.6 million.

The $1.8 billion Ponzi-like scheme hurt 17,000 US investors including those in SC.

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Ponzi scheme suspects arrested

$1.8 billion scheme bilked 320 South Carolinians

Posted

Accused investment peddlers allegedly defrauded 320 wealthy SC investors of more than $28.6 million.
The $1.8 billion Ponzi-like scheme hurt 17,000 US investors including those in SC.
SC Attorney General Alan Wilson's office is seeking to recover money from:
• New York investment adviser GPB Capital Holdings.
• New York broker-dealer Ascendant Alternative Strategies.
• Texas marketing liaison Ascendant Capital.
• David Gentile of Florida and Jeffry Schneider of Texas.
The alleged scheme involved the sale of unregistered, high-commission interests in investments GPB managed. 
The scheme targeted investors whose net worth qualified them for transactions exempt from SEC and state registration.
The suspects allegedly lured investors with promises of an 8% return “fully covered” by cash flow from their investments.
These included automotive, waste management, information technology and health care.  
In reality, the accused allegedly relied on Ponzi financing to use new investors’ money to pay prior investors.
Securities regulators in Alabama, Georgia, Illinois, Missouri, Massachusetts, New Jersey and New York are also involved plus the Securities and Exchange Commission.  
The US Attorney’s Office in New York arrested Schneider and others on criminal charges and Gentile agreed to surrender.
The accused harmed investors by taking their money for themselves and family members to support luxurious lifestyles including private jet travel and a Ferrari for Gentile’s personal use.
The SC Attorney General is charged with protecting investors from fraud.
To file a complaint regarding a product or person selling them, please go to http://www.scag.gov/registering-a-complaint or call 803-734-3970.

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