Advisor Kevin Rainwater (Rainwater), currently employed by Arkadios Capital (Arkadios) and ACG Wealth Inc. (ACG Wealth) has been subject to at least four customer complaints and five tax liens or judgments during the course of his career. According to a BrokerCheck report these customer complaints appears to concern unsuitable investments in alternative investments. These allegations may also concern investments in GPB Capital Holdings (GPB Capital) related investments. Arkadios is known to have approved their brokers to sell GPB Capital to their clients.
On February 4, 2021 the U.S. Securities and Exchange Commission (SEC), the U.S. Attorney’s Office for the Eastern District of New York (DOJ), and seven states filed separate simultaneous actions against GPB Capital and other defendants connected to the firm accusing it of being a Ponzi-like scheme. In a press release the SEC stated that it “charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion…”
As reported by Bloomberg “If proved, [GPB] would be one of the largest such schemes to target individual investors since the massive frauds of Bernard Madoff and Robert Allen Stanford came to light.” The DOJ indicted David Gentile, the founder of GPB, Jeffry Schneider, the owner and CEO of Ascendant Capital LLC, and Jeffrey Lash, a former managing partner of GPB relating to the fraud. If convicted, the defendants each face up to 20 years’ imprisonment.
New York Attorney General Letitia James accused GPB of “defrauding investors across the country out of more than $700 million through a Ponzi-like scheme that offered to pay investors generous monthly distributions they could never deliver.” Further, “Investors put in more than $1.8 billion into GPB funds but were left without a single cent of profit,” said Attorney General James. Investor funds are alleged to have been spent to subsidize expensive toys like private planes, Ferrari sports cars, and luxury travel for the three defendants.
What’s GPB Worth Now? “According to court papers, GPB claimed to manage just $239 million as of December, despite raising the $1.8 billion.” If true, this would reflect approximately 13% of investors’ total investments across all GPB funds.
Our law firm has represented over 100 investors in claims against broker-dealers for failing in their obligations to avoid selling clients Ponzi-scheme investments like GPB. Many of the claims made by regulators and law enforcement echo claims that our firms have been alleging on behalf of clients for nearly two years.
GPB Capital Holding’s funds include:
GPB Cold Storage
GPB Automotive Fund
GPB Automotive Income
GPB Holdings II and III
GPB Waste Management
GPB NY Development
Rainwater entered the securities industry in 1998. Since August 2010 Rainwater has been registered with ACG Wealth Inc. out of the firm’s Atlanta, Georgia office location. In addition, since November 2017 Rainwater has been associated with Arkadios Capital also in Atlanta, Georgia.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
 GPB Capital Founder and CEO Among Three Individuals Indicted in Private Equity Investment Fraud (available at: https://www.justice.gov/usao-edny/pr/gpb-capital-founder-and-ceo-among-three-individuals-indicted-private-equity-investment)
 Attorney General James Sues Private Equity Fund Manager for Ponzi-Like Investment Scheme that Defrauded Investors Out of More Than $700 Million (available at: https://ag.ny.gov/press-release/2021/attorney-general-james-sues-private-equity-fund-manager-ponzi-investment-scheme)
 NY money manager charged in $1.8 billion Ponzi-like fraud, Reuters (available at: https://www.reuters.com/article/new-york-gpb-capital-lawsuit/update-2-ny-money-manager-charged-in-18-billion-ponzi-like-fraud-idUSL1N2KA1UV)