The SearchVoat Forum

NEW YORK (Reuters) - The head of a New York money manager and two associates were criminally charged on Thursday with running what authorities called a $1.8 billion Ponzi-like fraud where thousands of victims were falsely promised steady returns on their investments.

David Gentile, the chief executive of GPB Capital Holdings LLC, was accused of using new money to repay earlier investors, and together with his co-defendants siphoning millions of dollars to pay themselves and fund luxury expenses, including a Ferrari for Gentile.
Authorities said more than 17,000 retail investors were taken in by promises that GPB would provide consistent 8% annual returns plus occasional “special” distributions.
Criminal charges were also brought against Jeffry Schneider, the owner of GPB’s placement agent Ascendant Capital, and Jeffrey Lash, a former GPB managing partner.

Related civil charges were filed by several state regulators and the U.S. Securities and Exchange Commission, which accused GPB of silencing a known whistleblower and contractually forbidding former employees from talking with the agency.

In 2006, then Senator Joe Biden’s brother James and his son Hunter entered into an agreement to purchase a New York fund of hedge funds called Paradigm Global Advisors. The firm was started in 1991 by Dr James Park, one of the many sons-in-law of Unification Church founder Sun Myung Moon. Dr. Park claimed that Paradigm had $1.5 billion in assets under management. The Bidens failed to conduct proper due diligence and Dr. Park’s claim was later found to be false.

In March 2015, Barclay participated in an official trade delegation sponsored by U.S. Rep. Danny K. Davis of the 7th Congressional District of Illinois to meet with Jamaica’s leadership... Davis also received the endorsement of the Chicago Democratic Socialists of America (CDSA)[26] of which he is a member and had a relationship pre-dating his congressional run. ACORN, AFL-CIO, Sierra Club, and International Brotherhood of Teamsters are included in other groups also endorsing Davis in his bid...In 2004, Davis was met with national controversy when he crowned the late Rev. Sun Myung Moon in a religious ceremony at the Dirksen Senate Office Building honoring the controversial spiritual leader...