GPB Capital Holdings LLC is a private-equity firm that is facing criminal fraud and conspiracy charges for deceiving thousands of investors in what is described as a $1.7 billion Ponzi-like-scheme.

The three men tied to this criminal activity are David Gentile, the owner and chief executive of GPB; Jeffry Schneider, the owner and CEO of Ascendant Capital LLC; and Jeffrey Lash, a former GPB managing partner.

All three were arrested and are expected to appear for arraignment in federal court.

GPB Capital promised steady 8% dividends from investment gains to lure in investors. The Justice Department said that since December 2018, payments have stopped and investors have been unable to retrieve their capital.

It’s reported that GPB have defrauded more than 17,000 investors, and roughly 4,000 of them are seniors.

Source: The Wall Street Journal