Scientologist David Gentile charged by feds in $1.8 billion Ponzi-like fraud scheme

For months Jeffrey Augustine has been telling us about wealthy Scientologist David Gentile, a money manager who had lost his investors a lot of money at GBP Capital.

When a company employee was charged last summer, we wondered if an ongoing investigation was going to ensnare Gentile himself, the company’s chief executive.

Well, this afternoon New York Attorney General Letitia James announced that Gentile and two of his associates have been charged with running a $1.8 billion scam. The US Department of Justice press release about the charges can be seen here.

Here’s Reuters on the announcement:

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.

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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.

We’ve reached out to Jeffrey to get his thoughts on this amazing development.

Will you look at that, another criminal prosecution of a wealthy Scientologist. Add it to the pile.

 
Gentile and his family are associated with the New York Scientology org, where a church publication recognized them for their large donations.

 
Here’s the indictment itself…

US vs David Gentile: Indict… by Tony Ortega

 
And the SEC complaint…

SEC vs David Gentile: Complaint by Tony Ortega on Scribd

 
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Source Code

“Scientology is liable to be around for a long time, because that really isn’t a split terminal. Somebody’d have to dream one up which ran a parallel to get a total throw-out of the subject called Scientology. But then it throws itself out, which is the only thing that makes it safe to have around. Probably the only subject on Earth today which solves itself without liability or continuance of itself, which is quite interesting. It’s a safe subject.” — L. Ron Hubbard, February 4, 1957

 
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Avast, Ye Mateys

“Odd time of the year to speak about Christmas. But in this case it’s a statistic. Public Popularity increase over the world was very marked this last Christmas. The general public response was up very nearly 35% over previous years. The volume of public cards to me personally would indicate an increased popularity of Scientology by a full third! Gifts were 40 – 45% higher than in previous years. While it was a joy hearing from so many at the time, now in retrospect, it can be viewed as confirming a general public upsurge. My hard working personal staffs here and in other areas were impressed with the increase. In previous years it was already enormous. My staffs work for many weeks after Christmas caring for the flow, the address corrections and tabulations and do an excellent job of it. So the full picture is now in and the fact emerges. Public Popularity has increased a full third.” — The Commodore, February 4, 1971

 
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Overheard in the FreeZone

“Is religion and spirituality all part of the trap to keep us down involved in MEST as we appear to be? Auditing is the only answer to get rid of charge. It is that which holds us trapped and doing crazy things. If we wait until we can do it perfectly, we won’t ever do it. A lot of engrams got run from those who simply read DMSMH and did it even poorly. If we fight the Corp Church we take our eyes off the ball, create a game and problem that will hang in time and achieve nothing. Let’s just get on with clearing the planet. The church tells us to be careful: That’s suppression. LRH gave us a gift. Let’s get busy and use it. It is the most fun you can have.”

 
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Past is Prologue

1998: The UK newspaper Express on Sunday carried an article on a wealthy Saudi Arabian woman who has turned to Scientology. “Her billionaire father was once the richest man in the world and she has everything she could ever need. She had a mink coat at the age of three and luxury homes all over the world. But for Nabila Khashoggi, daughter of the Saudi Arabian arms dealer Adnan Khashoggi, money did not bring happiness. Now after leaving London for Los Angeles, she has become even deeper involved in the Church of Scientology. The 35 year old mother says the much-derided Scientology has helped her find fulfillment and ‘handle problems in my life.’ She claims her colourful family — her mother Soraya is said to have a reckless appetite for lovers and in 1989 her father was imprisoned in Switzerland accused of fraud — all approve of her decision.”

 
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Random Howdy

“Raining on other people’s parades is one of my specialties.”

 
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Full Court Press: What we’re watching at the Underground Bunker

Criminal prosecutions:
— Danny Masterson charged for raping three women: Masterson arraigned Jan 20. Next conf to set prelim, March 24.
— Jay and Jeff Spina, Medicare fraud: Jay’s sentencing delayed to March 2.
— Hanan and Rizza Islam and other family members, Medi-Cal fraud: Trial scheduled for May 20 in Los Angeles

Civil litigation:
— Luis and Rocio Garcia v. Scientology: Oral arguments were heard on July 30 at the Eleventh Circuit
— Valerie Haney v. Scientology: Forced to ‘religious arbitration.’ Petition for writ of mandate denied Oct 22 by Cal 2nd Appellate District. Petition for review by state supreme court denied Dec 11.
— Chrissie Bixler et al. v. Scientology and Danny Masterson: Dec 30, Judge Kleifield granted Scientology’s motions to compel arbitration. March 8: Status conference.
— Matt and Kathy Feschbach tax debt: Eleventh Circuit ruled on Sept 9 that Feshbachs can’t discharge IRS debt in bankruptcy. Dec 17: Feshbachs sign court judgment obliging them to pay entire $3.674 million tax debt, plus interest from Nov 19.
— Brian Statler Sr v. City of Inglewood: Second amended complaint filed, trial set for Nov 9, 2021.

Concluded litigation:
— Author Steve Cannane defamation trial: Trial concluded, Cannane victorious, awarded court costs.
— Dennis Nobbe, Medicare fraud, PPP loan fraud: Charged July 29. Bond revoked Sep 14. Nobbe dead, Sep 14.
— Jane Doe v. Scientology (in Miami): Jane Doe dismissed the lawsuit on May 15 after the Clearwater Police dropped their criminal investigation of her allegations.

 
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SCIENTOLOGY BLACK OPS: Tom Cruise and dirty tricks

The Australian Seven News network cancelled a 10-part investigation of Scientology and its history of dirty tricks. Read the transcripts of the episodes and judge for yourself why Tom Cruise and Tommy Davis might not have wanted viewers to see this hard-hitting series by journalist Bryan Seymour.

SCIENTOLOGY: FAIR GAME

After the success of their double-Emmy-winning, three-season A&E series ‘Scientology and the Aftermath,’ Leah Remini and Mike Rinder continue the conversation on their podcast, ‘Scientology: Fair Game.’ We’ve created a landing page where you can hear all of the episodes so far.

LEAH REMINI: SCIENTOLOGY AND THE AFTERMATH

An episode-by-episode guide to Leah Remini’s three-season, double-Emmy winning series that changed everything for Scientology watching. Originally aired from 2016 to 2019 on the A&E network, and now on Netflix.

SCIENTOLOGY’S CELEBRITIES, from A to Z

Find your favorite Hubbardite celeb at this index page — or suggest someone to add to the list!

 
Other links: Scientology’s Ideal Orgs, from one end of the planet to the other. Scientology’s sneaky front groups, spreading the good news about L. Ron Hubbard while pretending to benefit society. Scientology Lit: Books reviewed or excerpted in a weekly series. How many have you read?

 
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THE WHOLE TRACK

[TWO years ago] Mark Bunker: Clearwater’s Officer (now Chief) Slaughter oversaw the Scientology detail
[THREE years ago] Are you Sci-Curious? Here’s Scientology’s 2018 Super Bowl ad
[FOUR years ago] Scientology’s Super Bowl ad: Here’s your sneak peek at what it’s going to be like
[FIVE years ago] When David Miscavige was riding high with ‘The Basics’ — Scientology’s 2008 New Year’s event!
[SIX years ago] LEAH REMINI IN TALKS TO SUE SCIENTOLOGY: MIKE RINDER TESTIMONY
[SEVEN years ago] It’s a make-or-break day for Monique Rathbun vs Scientology in a Texas courtroom
[EIGHT years ago] Best Twitter Reactions to Scientology’s Super Bowl Ad
[NINE years ago] Scientology Wants It Both Ways: The Church’s Opposite Legal Strategies In Florida and Texas

 
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Posted by Tony Ortega on February 4, 2021 at 13:10

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Our new book with Paulette Cooper, Battlefield Scientology: Exposing L. Ron Hubbard’s dangerous ‘religion’ is now on sale at Amazon in paperback and Kindle formats. Our book about Paulette, The Unbreakable Miss Lovely: How the Church of Scientology tried to destroy Paulette Cooper, is on sale at Amazon in paperback, Kindle, and audiobook versions. We’ve posted photographs of Paulette and scenes from her life at a separate location. Reader Sookie put together a complete index. More information can also be found at the book’s dedicated page.

The Best of the Underground Bunker, 1995-2020 Just starting out here? We’ve picked out the most important stories we’ve covered here at the Underground Bunker (2012-2020), The Village Voice (2008-2012), New Times Los Angeles (1999-2002) and the Phoenix New Times (1995-1999)

Other links: BLOGGING DIANETICS: Reading Scientology’s founding text cover to cover | UP THE BRIDGE: Claire Headley and Bruce Hines train us as Scientologists | GETTING OUR ETHICS IN: Jefferson Hawkins explains Scientology’s system of justice | SCIENTOLOGY MYTHBUSTING: Historian Jon Atack discusses key Scientology concepts | Shelly Miscavige, 15 years gone | The Lisa McPherson story told in real time | The Cathriona White stories | The Leah Remini ‘Knowledge Reports’ | Hear audio of a Scientology excommunication | Scientology’s little day care of horrors | Whatever happened to Steve Fishman? | Felony charges for Scientology’s drug rehab scam | Why Scientology digs bomb-proof vaults in the desert | PZ Myers reads L. Ron Hubbard’s “A History of Man” | Scientology’s Master Spies | The mystery of the richest Scientologist and his wayward sons | Scientology’s shocking mistreatment of the mentally ill | The Underground Bunker’s Official Theme Song | The Underground Bunker FAQ

Watch our short videos that explain Scientology’s controversies in three minutes or less…

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Our non-Scientology stories: Robert Burnham Jr., the man who inscribed the universe | Notorious alt-right inspiration Kevin MacDonald and his theories about Jewish DNA | The selling of the “Phoenix Lights” | Astronomer Harlow Shapley‘s FBI file | Sex, spies, and local TV news | Battling Babe-Hounds: Ross Jeffries v. R. Don Steele