FOUNDER OF GPB CAPITAL AND CEO OF ASCENDANT CAPITAL CONVICTED OF FRAUD CHARGHES

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U.S. Attorney’s Office, Eastern District of New York
Defendants Raised More Than $1 Billion from Investors

A federal jury in Brooklyn convicted David Gentile, the founder, owner and Chief Executive Officer (CEO) of GPB Capital Holdings, LLC (GPB) and Jeffry Schneider, the owner and CEO of Ascendant Capital LLC (Ascendant Capital), on all counts of an indictment charging them with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud; Gentile was also convicted on two counts of wire fraud.

 The charges related to a years-long scheme to defraud more than 10,000 investors by misrepresenting the source of funds used to make monthly distribution payments and the amount of revenue generated by three of GPB’s investment funds.  The verdict followed an eight-week trial before United States District Judge Rachel P. Kovner.  When sentenced, Gentile and Schneider each faces up to 20 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury found that the defendants lied to investors about the health of their funds and the source of fund distribution payments, all while they were fraudulently making those distribution payments with investor capital to maintain the appearance of successful portfolio companies,” stated United States Attorney Peace.  “This Office has a proud history of prosecuting fraudsters who abuse the trust of investors, and we will continue to vigorously protect the integrity of the financial markets.”

Mr. Peace expressed his appreciation to the Securities and Exchange Commission, the New York City Business Integrity Commission and the New York City Police Department for their valuable assistance with the case.

GPB, founded in 2013 by Gentile, was a New York-based investment advisor registered with the SEC.  GPB was the general partner of several investment funds that raised and invested capital in a portfolio of private equity investments.  GPB worked with Ascendant Capital, a marketing firm founded by Schneider, to market the GPB funds to investors.  Gentile and Schneider worked closely together on the operation and marketing of GPB funds, receiving regular updates as to the funds’ performance.

As proven at trial, between August 2015 and December 2018, the defendants engaged in a scheme to defraud investors and prospective investors in several GPB funds through material misrepresentations and omissions.

Specifically, Gentile and Schneider, both individually and through employees at Ascendant Capital, represented to investors that the funds would make a monthly distribution payment that would be fully covered from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the payments to be made from the companies’ cash flow, without drawing from capital raised by investors. 

In reality, when the funds’ performance lagged, the defendants tried to disguise the shortfall with fraudulent, back-dated documents and paid investor distributions out of investor capital.

Ultimately, investor capital was used to pay for a significant portion of the distributions made to investors.

Gentile and Schneider were aware that the GPB Funds were underperforming and authorized the fraudulent distribution payments.

This case is being handled by the Office’s Business & Securities Fraud Section.  Assistant United States Attorneys Artie McConnell, Jessica K. Weigel, Nicholas M. Axelrod and Kate Mathews are in charge of the prosecution, with the assistance of Paralegal Specialists Madison Bates and Allison Henry.

The Defendants:

DAVID GENTILE
Age:  57
Manhasset, New York

JEFFRY SCHNEIDER
Age:  55
Austin, Texas

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AUGUST 6 — FOUNDER OF BITCLOUT DIGITAL ASSET CHARGED WITH FRAUD IN CONNECTION WITH SALE OF BITCLOUT TOKENS

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U.S. Attorney’s Office, Southern District of New York
Nader Al-Naji Defrauded Investor of Approximately $3 Million

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of NADER AL-NAJI, the founder and promoter of the “BitClout” token.

 AL-NAJI was charged with defrauding a “BitClout” purchaser by making false and misleading representations disclaiming control over the use of the investment funds.  AL-NAJI was taken into custody on Saturday, July 27, 2024, and was presented JULY 29 before a U.S. Magistrate Judge in California.

U.S. Attorney Damian Williams said:

“BitClout may have been a new token, but Nader Al-Naji’s alleged fraud was nothing new.  He allegedly lied to get access to millions of dollars, then gave the money away to family and friends.  Today’s arrest signifies this Office’s commitment to holding to account people who use deception to enrich themselves.”

FBI Acting Assistant Director in Charge Christie M. Curtis said:

“Nader Al-Naji, founder of the BitClout protocol, allegedly lied to investors and misappropriated investments in the protocol for personal expenses and gifts.  Failing to properly disclose the use of invested funds disrupts the integrity vital to investing and can breed distrust for future opportunities.  The FBI does not tolerate individuals who use false promises and half-truths to exploit well-intended investors of their funds.

According to the allegations contained in the Complaint:[1]

AL-NAJI is the founder of BitClout, a social media and cryptocurrency trading platform that purportedly allowed users to purchase BitClout tokens using Bitcoin, ostensibly through a decentralized protocol without any centralized issuer, for the purpose of trading BitClout tokens in connection with the social media profiles of other BitClout users.

BitClout held itself out as a “cross between a financial app and a social app.”  Specifically, BitClout was touted as “a social network built from the ground up as its own custom blockchain.  It’s not a company, it has no employees—it’s just code and coins . . . . [W]e refer to BitClout as a ‘protocol’—it is ultimately nothing more than an open-source piece of code running on machines all over the world.  No company, just code and coins.”

In or about January 2021, AL-NAJI contacted representatives of a prospective investor (“Investor-1”) to discuss the BitClout project and provided Investor-1 with BitClout’s marketing material.  On or about January 18, 2021, AL-NAJI met with representatives of Investor-1 and stated, in substance and in part, his intent to use the Bitcoin raised from selling BitClout to develop the BitClout protocol.  As part of negotiations with Investor-1, AL-NAJI claimed, in substance, that the role played by his entity was merely to purchase BitClout tokens from the protocol, and that he did not have any control over the funds after the purchase was complete.

In fact, contrary to AL-NAJI’s representations to Investor-1, AL-NAJI did maintain control over the proceeds provided by Investor-1 and used them for, among other things, personal expenses and gifts to AL-NAJI’s family members.  After inducing Investor-1 to invest approximately $3 million, AL-NAJI routed the funds through multiple accounts for the ultimate benefit of himself and family members.

*                *                *

Al-NAJI, 32, of Los Angeles, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Sarah Mortazavi and Nicholas Folly are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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AUGUST 6– NEWS CONFERENCE ON COLON CANCER. WHY RESIDENTS 45 AND OLDER NEED TO GET SCREENED, FOLLOWED BY COUNTY EXECUTIVE LATIMER BRIEFING ON UPCOMING STORM AT 2:30.

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Tuesday, August 6

2 p.m.

BRIEFING ON UPCOMING STORM 2:30 PM

Watch Live:

 https://www.facebook.com/westchestergov/

·        County Executive George Latimer introduces the importance of colorectal cancer screening.

·        Westchester County Health Department Commissioner Sherlita Amler, MD, to join to encourage everyone 45 years and older to get screened and urge others to do the same.

·        Northwell Health Regional Chief of Colon & Rectal Surgery Parul J. Shukla, MD and other partners to join to explain screening options and access.

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AUG 5 12 NOON:—COUNTY CLOSES MAMARONECK, RYE, NEW ROCHELLE BEACHES DUE TO HIGH BACTERIA LEVELS FROM WEEKEND RAINS

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EACH CLOSURE NOTIFICATION DUE TO ELEVATED BACTERIA LEVELS

(White Plains, NY) – iSSUED 12 NOON The Westchester County Health Department has closed the following beaches as a precaution because of high levels of rainfall in the past 24 hours which may lead to elevated bacteria levels. If excessive rainfall does not occur in the next 24 hours, beaches may reopen on August 6, 2024.

MAMARONECK:

    • Harbor Island
    • Beach Point Club
    • Orienta Beach Club
    • Mamaroneck Beach and Yacht Club

 

RYE:

    • Coveleigh Club

 

NEW ROCHELLE:

    • Hudson Park Beach
    • Davenport Club
    • Greentree Club
    • Surf Club

Residents and visitors are encouraged to visit the Westchester County website for the latest updates on beach closures and reopening schedules. The County remains committed to maintaining high standards of environmental health and safety across its recreational facilities.

 

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AUG 5–FEINER: STATE, LOCAL BOARD OF ELECTIONS DRAGGING THEIR FEET ON ” DROP OFF VOTING BOXES”

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WPCNR THE LETTER TICKER. August 5, 2024:

I have been calling on the Board of Elections to place voting drop voting boxes outside convenient locations in Westchester County for over four years.

These drop voting boxes enable voters to conveniently drop off their ballots 24 hours a day at convenient and secure locations.  The voting drop off boxs are in use around the country –even in Red states that discourage voting participation.

The State Legislature authorized these voting boxes to be placed around the state –providing local Board of Elections with the option to use them or not.

I can’t understand why these voting drop off boxes have not been used in Westchester and around NYS and why NYS is so backwards in offering voters this convenient tool.

Turnout in the Latimer-Bowman primary earlier this summer would have been even higher if these drop off voting boxes would have been placed around the congressional district.

  With interest in the 2024 elections expected to be very high – I would like to strongly encourage the Westcheser County Board of Elections to purchase drop voting boxes and to place them in front of municipal buildings, fire houses, libraries, supermarkets, post offices and schools.

  Early voting has been a big success. But, placing voting drop boxes at key locations throughout the county will result in more voter participation. Let’s provide voters with no excuses not to vote.  These voting boxes should be used for all elections- Presidential, Governor, State, county, local elections, school and fire district elections and special referendums.

A link to an article on drop boxes is below: https://www.marieclaire.com/politics/ballot-drop-boxes-guide/

PAUL FEINER

Greenburgh Town Supervisor

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TONIGHT FRIDAY NIGHT WHITE PLAINS WEEK REPORT OF AUGUST 2 FIOS ALL COUNTY CH45. WP OPTIMUM CH 76 AND WPTV www.wpcommunitymedia.org

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NADINE HUNT-ROBINSON RUNS FOR MAYOR EXCLUSIVE INTERVIEW

SENATOR SCHUMER’S LETTER TO AMERICA  HIS “NO KINGS” BILL

COVID ROLLS OUT RELENTLESSLY  SCHOOLS AT RISK FOR HIGH SEPTEMBER CASES

WESTCHESTER D.A SAYS HER OFFICE WILL INVESTIGATE BUSINESS ABUSES. CONTRACTOR CONVICTED FOR STIFFING WORKERS

 

H

HOW HEAT WAVE IN 1896– JUST LIKE THIS ONE KILLED 1,500 PEOPLE 

 

DANGER IN THE DELI– BOAR’S HEAD MEATS  71 BRANDS FOUND WITH LISTERIA BACTERIA

 

JOHN BAILEY AND THE NEWS 

THIS WEEK AND EVERY WEEK

ON WHITE PLAINS WEEK

FOR 23 YEARS

 

 

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AUG 1 — UPDATE DANGER IN THE DELI: RECALL OF BOAR’S HEAD VIRGINIA HAM SALAMI AND BOLOGNA

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en Español

Recall of Deli Meats Linked to Listeria Expanded

The U.S Department of Agriculture has expanded its recall of deli meats linked to a multi-state Listeria outbreak.

An additional 71 varieties of Virginia ham, salami and bologna that were produced in a Virginia plant and sold under the Boar’s Head and Old Country brands have been added, in addition to the original Boar’s Head liverwurst that tested positive for the listeriosis bacteria. Read More

View Fact Sheet HERE.

For a full list of the contaminated products and more detailed cleaning instructions, visit the Health Department’s website.


en Español

Retiro de Carnes Frías Vinculado a la Listeria Ampliado

El Departamento de Agricultura de los Estados Unidos ha ampliado su retiro de carnes frías vinculadas a un brote de Listeria en varios estados. Se han agregado 71 variedades adicionales de jamón de Virginia, salami y mortadela que se produjeron en una planta de Virginia y se vendieron bajo las marcas Boar’s Head y Old Country, además del liverwurst de Boar’s Head original que dio positivo por la bacteria listeriosis. Leer más

Vea la hoja informativa AQUÍ.

Para obtener una lista completa de los productos contaminados e instrucciones de limpieza más detalladas, visite el sitio web del Departamento de Salud

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AUG 1 –THE DOG DAY: 90 DEGREES AT NOON, 46% HUMIDITY HOTTEST DAY OF SUMMER? HAZY, HOT, HUMID THROUGH FRIDAY

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75 DEGREES AT SUNRISE — HIGH 95 HUMIDITY WILL SEND TEMPS OVER 100 NEXT 2 DAYS

The National Weather Service has issued a Heat Advisory for Westchester County through Friday at 8 P.M. During this period, heat and humidity are expected to combine to make outdoor temperatures feel close to 100 degrees. 

AT 12 NOON WPCNR CLIME TIME IT IS 90 WPCNR STEAMING DEGREES, 46% HUMIDITY AND IT FEELS LIKE 96…IT FEELS HOT.

With heat and humidity in mind, the Westchester County Health Department warns residents that these conditions pose significant health risks. To protect themselves, residents are urged to stay hydrated, avoid strenuous outdoor activities, and check on vulnerable family members and neighbors.

Westchester County Commissioner of Health Sherlita Amler, MD, said: “The heat can overcome you. Drink lots of water and don’t overexert yourself outdoors when it is this hot and humid. If you leave pets outdoors, be sure they have an abundant supply of water and shade. They need it just like we do.”

Amler said the very young, seniors, people who are obese and those with high blood pressure, heart disease, diabetes or lung conditions are most vulnerable to dehydration, heat exhaustion and heat stroke. Heat stroke and dehydration can surprise you. High humidity, chronic health conditions and some medications can also increase a person’s risk for heat stroke.

Heat stroke is a serious and life-threatening condition that claims many lives nationwide each year. Symptoms include hot red, dry skin, shallow breathing, a rapid, weak pulse and confusion. Call 911 if you suspect heat stroke and immediately cool the overheated person while waiting for emergency help to arrive.

Another concern during a heat wave is heat exhaustion. Signs include headache, nausea or vomiting, dizziness and exhaustion, as well as cool, moist, pale or flushed skin. Anyone suffering from heat exhaustion should move out of the sun and apply cool, wet cloths to their skin.

Homes without air conditioning can be much hotter than outdoor temperatures. Use air conditioning to stay cool at home or go to an air conditioned place. If you don’t have home air conditioning, continue to seek out cool spaces each day as long as it remains hot. Check on vulnerable friends, family members and neighbors.

To reduce risk during outdoor work, the Health Department recommends scheduling frequent rest breaks in shaded or air-conditioned environments.

Amler reminded residents never to leave people or pets in a car. Temperatures can quickly rise to unsafe levels, so motorists should always look before they lock their vehicles.

“To avoid tragedy, never leave infants, children, seniors or pets in a closed car no matter how brief the time,” Amler said. “Closed vehicles can quickly heat up to a life-threatening 140º F or more.”

 

During a heat wave, seniors and young children especially should avoid vigorous outdoor activity, seek the shade, spend time in air-conditioned locations and drink lots of water throughout the day,” Amler said. “Especially when they’re swimming and playing in the water, children often forget to drink, so parents and caregivers should prompt children to take breaks to hydrate.”

Those who plan to travel by car should prepare their vehicle before hitting the road. Always travel with a spare cell phone battery, and avoid leading radios, phone chargers and other accessories running when the engine is not. Check to make sure your air conditioning is properly functioning and coolant is at the proper level. If you plan to travel in less populated areas, bring water and an umbrella for shade if it becomes necessary to leave the car. Always keep air flowing throughout the vehicle, and try to park in the shade. 

For tips to prevent heat-related illness and places to stay cool, residents can visit the Health Department website at www.westchestergov.com/health.

POOLS  BEACHES

To beat the heat, residents can cool off at a County beach or pool.

Glen Island Beach in New Rochelle is open daily from 11 a.m. to 6:30 p.m. and Croton Point Beach in Croton-on-Hudson is open Wednesdays through Sundays, 11 a.m. to 6:30 p.m.

All four pools, Saxon Woods in White Plains, Sprain Ridge and Tibbetts in Yonkers and Willson’s Waves in Mount Vernon are all open daily from 11 a.m. to 6:30 p.m. Last entry at all facilities is at 6 p.m. Proof of Westchester County residency is required at Glen Island Beach and all pools. Admission fees apply; parking fees apply at Glen Island, Croton and Tibbetts.

Residents who need a place to cool off also can check the Cooling Center FinderWhen it is too hot at home, senior centers, libraries, community centers and indoor malls offer a respite from the heat. Call before you go to be sure of the hours.

Elevated heat and humidity can also lead to unhealthy levels of ozone, a gas produced by the action of sunlight on organic air contaminants from auto exhaust and other sources.  For air quality updates, go to https://www.airnow.gov. The   New York State Department of Environmental Conservation forecasts daily ozone conditions at (http://www.dec.ny.gov), or call the New York State Air Quality Hotline at 1-800-535-1345.

The County’s Department of Emergency Services is monitoring the weather forecast, tracking the opening of local Cooling Centers and is in contact with Con Edison and NYSEG concerning the potential for power outages.

For more tips to prevent heat-related illness and places to stay cool, residents can visit the Health Department website at www.westchestergov.com/health.

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JULY 30—GOVERNOR HOCHUL CONVENES FIRST INDIGENOUS PEOPLES CONVENTION

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Earlier today, Governor Kathy Hochul convened leaders from the Indigenous Nations across New York State for a historic summit at the New York State Capitol in Albany.

PHOTOS of the event are available on the Governor’s Flickr page.

Today’s summit was attended by the following Indigenous Nations:

  • Cayuga Nation
  • Oneida Nation
  • Onondaga Nation
  • Tonawanda Band of Seneca
  • Tuscarora Nation
  • Saint Regis Mohawk Tribe
  • Shinnecock Nation
  • Unkechaug Nation

This summit follows Governor Hochul’s commitment to supporting and strengthening relationships with Indigenous peoples across the state. As part of this commitment, Governor Hochul has:

  • Appointed the First Deputy Secretary for Indigenous Nations. Elizabeth Rule was appointed Deputy Secretary for Indigenous Nations. Elizabeth is an enrolled citizen of the Chickasaw Nation and an Assistant Professor specializing in Native American Studies at American University. Prior to joining American University, Elizabeth directed George Washington University’s Center for Indigenous Politics and Policy. She received her bachelor’s degree from Yale University, and her master’s degree and Ph.D. from Brown University.
  • Visited the Onondaga Nation Longhouse. Governor Kathy Hochul made a historic visit to the Onondaga Longhouse – the first visit by a sitting Governor in more than half a century – for a conversation with Onondaga Nation leaders, including Tadodaho Sid Hill, representatives of the Council of Chiefs, and Clan Mothers.
  • Returned more than 1,000 Acres of Land to the Onondaga Nation. Governor Kathy Hochul, joined by United States Department of Interior Secretary Deb Haaland and Onondaga Nation Tadodaho Sidney Hill, announced a historic agreement as part of the Onondaga Lake Natural Resource Damage Assessment and Restoration Program that will return more than 1,000 acres of scenic land to the Nation. As Natural Resource Trustees for the settlement with Honeywell International, Inc., the New York State Department of Environmental Conservation and the Department of the Interior’s Fish and Wildlife Service signed a resolution that directs Honeywell to transfer the title to more than 1,000 acres of open space in Central New York’s Tully Valley to the Onondaga Nation – one of the largest returns of land by any state to an Indigenous nation.
  • Proposed to Strengthen Stability of Indigenous Families. The 1978 Indian Child Welfare Act (ICWA) is a federal law created to protect the best interests of Native American children involved in child custody proceedings. The law emerged as a response to the disproportionate rates at which both residential boarding schools and state actors removed Native American children from their homes, communities, and Indigenous Nations. This year, New York’s Deputy Secretary for Indigenous Nations and the Office of Children and Family Services, will advance, in consultation with Nation leadership and stakeholders, strategies to strengthen the objectives of the Indian Child Welfare Act, underscoring New York’s commitment to redressing injustices inflicted upon Indigenous communities.
  • Ensured Dental Care Access for Indigenous Nations. As part of the FY 2025 Budget, New York State will include $2.5 million in funding for Indigenous Nations dental health care, with the aim of addressing gaps in access. This funding will help ensure Indigenous Nations dental offices and providers can offer treatment without referring patients off-site and away from Nation territories. This builds on Governor Hochul’s commitments to lifting up Indigenous Nations throughout New York, including directing New York’s Deputy Secretary for Indigenous Nations and the Office of Children and Family Services to advance strategies to strengthen the objectives of the Indian Child Welfare Act and commencing a comprehensive review of artistic representation of Indigenous peoples at the New York State Capitol.
  • Responded to Offensive Representations. To ensure that all New Yorkers are welcomed in the State Capitol, Governor Hochul will commence a comprehensive review of artistic representation of Indigenous peoples in the Capitol, with invited participation from representatives from each of the nine Indigenous Nations. All New Yorkers should feel welcome and respected when visiting the Capitol, but unfortunately, offensive imagery and distasteful representations of populations in the art which adorns the Capitol can alienate visitors. Assessments of offensive artistic representations of Indigenous peoples are informed by precedent more than eighty years old, and Indigenous peoples, in particular, are often depicted in artworks in a manner that reflects harmful racial stereotypes and glorifies violence against Indigenous peoples. Such depictions do not reflect the values of New York State.
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