Former executives David Gentile and Jeffry Schneider have been sentenced to prison for their roles in a large-scale investor fraud case. Gentile, founder and former CEO of GPB Capital, received a seven-year sentence, while Schneider, former CEO of Ascendant Capital, was sentenced to six years.
According to the U.S. Attorney's Office release, they were convicted in August 2024 by a federal jury on charges of securities fraud, conspiracy to commit securities fraud, and wire fraud conspiracy. Gentile was also convicted of wire fraud. Between 2015 and 2018, the two misled over 10,000 investors, causing approximately $1.6 billion in losses. Investigators found they used false claims to inflate fund performance and misrepresented the source of investor payouts, which were funded using new investor money rather than actual profits.
The case was the result of a multi-year investigation by the FBI, the Securities and Exchange Commission, and other agencies. It was prosecuted by the U.S. Attorney’s Office’s Business and Securities Fraud Section. Jeffrey Lash, a co-conspirator who pleaded guilty to wire fraud in 2023, is awaiting sentencing. Additional penalties for Gentile and Schneider, including forfeiture and restitution, are expected to follow.
