GPB Capital Lawsuit Claims It Was $1.8 Billion Ponzi Scheme

A class-action lawsuit was filed in federal court in Texas alleging that the founder of GPB Capital Holdings, David Gentile, created a series of companies to defraud investors. GPB Capital was sold by over 60 independent broker-dealers as private partnerships. The broker-dealers reportedly received a commission of over $100 million. Just two weeks ago GPB Capital’s chief compliance officer was arrested for obstruction of justice.

GPB Capital investors were pitch returns of 8% but were paid with other investors’ funds. “On the surface, the GPB Capital Ponzi scheme was a garden variety Ponzi scheme,” according to the complaint. This is a classic definition of a Ponzi scheme. Also, several other lawsuits are alleging bad sale practices because the primary product was a “private placement,” that should have only been sold to “accredited investors,” meaning people with a network of over $1 million, due to the high-risk nature of private placements.

Haselkorn & Thibaut P.A., a national investment fraud law firm, has filed a number of claims on behalf of GPB fund investors against various broker-dealer firms and continues to investigate the due diligence process, new product review process, sales practices and supervision practices at numerous other brokerage firms that were selling GPB funds to investor customers.

Jason Haselkorn, a Partner, said the following, “We are receiving a number of calls from worried investors and we have dedicated a team investigating the GPB Capital investments. The current reports are very disturbing to investors, many of whom are deeply concerned that there may be more bad news.”

He continues, “Investors need to know there are options for them to recover their realized or unrealized investment losses, but time is running out for some investors depending on their dates of purchase and that may limit some of their potential recovery options.” Investors are encouraged to call 1 888-628-5590 or visit their website at for a free case evaluation.

Turning to US Markets

US investors are focused on trade relations between China and the United States. The market is waiting for the signing of a partial trade agreement this month but the process of negotiating controversial issues, apparently, may be delayed. Beijing insists on canceling the September and planned December tariffs on Chinese exports but Washington has been slow to respond, which creates uncertainty and makes investors nervous. In addition, the place of signing of the agreement has not yet been determined. Meanwhile, the trade war is causing serious damage to both sides. In the first nine months of this year, imports of goods from China to the United States fell by $53 billion, and US exports to China fell by $14.5 billion. At the same time, the export of US agricultural products decreased by $2 billion and the export of vehicles and related equipment fell by $5.8 billion, as these segments were most seriously affected. Thus, the prolongation of the negotiation process leads to increased pressure on the largest world economies. USD is weakening against its main competitors – EUR, JPY, and GBP.

Today, oil prices moderately reduced.  The price is under pressure of the API report, according to which oil reserves in the United States grew by 4.260 million barrels. However, the aggravation of tension in the Middle East associated with the Iranian nuclear program and positive data on production orders in Germany prevented a significant reduction. In the evening, investors are waiting for the publication of the report from the EIA. Oil reserves are expected to rise by 1.515 million barrels. The implementation of the forecast will increase the pressure on quotes.


EUR is now strengthening against GBP and USD but has ambiguous dynamics against JPY. EUR is growing amid the publication of positive economic statistics. For September, EU retail sales grew more than markets expected, by 3.1%. Service PMI in Germany and the EU also improved. For October, the German figure rose from 51.4 to 51.6 points, and the European one increased from 51.6 to 52.3 points. The volume of production orders in Germany in September grew for the first time in three months, by 1.3%. At the same time, domestic orders increased by 1.6%, and foreign – by 1.1%. However, the general state of the German economy remains poor. Today, the German Economic Council lowered its forecast for German GDP growth next year to 0.9%. This year, economic growth should be only 0.5% but recession, apparently, will be avoided.

United Kingdom

GBP is strengthening against USD but weakening against JPY and EUR. Due to a lack of significant economic releases, the movement of GBP is due to external factors. Investors are preparing for tomorrow’s meeting of the Bank of England and its decision on the interest rate. It is expected that the key rate will remain at the same level of 0.75%, which it has been holding for more than a year. Under conditions of uncertainty regarding Brexit, the regulator is unlikely to risk making adjustments to the monetary policy and would prefer to refrain from any significant actions. A cover statement and speech by Mark Carney may contain the views of bank officials on the current state of the British economy and its immediate prospects. Earlier, members of the regulator have repeatedly opposed Brexit, believing that the British economy will suffer significant losses even if an agreement between the EU and the UK is concluded. However, Prime Minister Boris Johnson does not agree with this position. On the eve, in the Daily Telegraph, he compared the country with a car stuck in a traffic jam due to Brexit. After resolving the situation, Johnson promised the British economy an influx of hundreds of billions of pounds of investment.


JPY is strengthening against USD and GBP but has ambiguous dynamics against EUR.  Japanese investors are focused on the publication of the recent Bank of Japan Meeting Minutes and Service PMI data. BoJ report told the market nothing new. Officials confirmed that there was a moderate upward trend in the Japanese economy, although a slowdown in foreign economies affected exports, production and business sentiment. It was also said that the regulator intends to keep extremely low levels of short-term and long-term interest rates for a long time, at least until the spring of 2020.

The October sector PMI of Japan, published today, fell from 52.8 to 49.7 points and for the first time since 2016, it entered the stagnation zone. Experts attribute it to the increase in Japanese sales tax in October.


AUD is strengthening against GBP and USD but has ambiguous dynamics paired with JPY and EUR. Due to a lack of significant economic releases, AUD is trading under the influence of technical factors. Tomorrow, investors are waiting for the publication of the September data from the Australian labor market. The trade surplus is expected to continue but the indicator will decrease from 5.926 billion to 5,000 billion. The implementation of the forecast may put pressure on AUD.

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