GPB Capital Holdings LLC, accused of investor fraud, will operate under a receiver rather than a monitor as a remedy for its founder’s purported appointment of new managers, the Second Circuit said Tuesday.
The ruling is a win for the Securities and Exchange Commission in its effort to preserve $1.7 billion allegedly raised from 17,000 retail investors, including 4,000 seniors. GPB’s founder-owner David Gentile was convicted of a Ponzi-like fraud at the asset management firm in a criminal case in August.
Gentile had consented to an earlier monitor-related order providing for the receivership remedy, the US Court of Appeals for ...
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