GPB Capital Ponzi May Put $1.7 Billion at Risk, U.S. Says (3)

GPB Capital Holdings chief David Gentile was indicted for allegedly taking part in a Ponzi-like scheme that defrauded thousands of investors across the country and that regulators say may have put more than $1.7 billion at risk.

Gentile and two other executives are accused of using the funds to cover shortfalls and enrich themselves instead of securing returns for their customers. Some 17,000 investors were affected, about 4,000 of them seniors, according to a related complaint by the U.S. Securities and Exchange Commission.

GPB had raised the big sum from individual investors nationwide, and almost all of it is ...