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GPB Ponzi Scheme

New York and the federal government separately accused investment firm GPB Capital Holdings, Ascendant Capital and their executives Thursday of running a $700 million Ponzi scheme.

MANHATTAN — New York Attorney General Leticia James accused investment firm GPB Capital Holdings and Ascendant Capital of running a $700 million Ponzi scheme. Separate from that complaint in Manhattan Supreme Court, Brooklyn prosecutors brought a federal indictment against GPB Capital CEO David Gentile, GPB managing partner Jeffrey Lash and Ascendant CEO Jeffrey Schneider.

James wants restitution and a ban the three executives from working in the New York securities industry, saying the company promised investors 8% returns but used new money to cover old returns and falsified financial statements.

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