The US Federal criminal trial of Scientologist David Gentile and his co-defendant Jeffry Schneider began two weeks ago in Brooklyn. The defendants have filed several motions since the trial began. These motions are asking for arguments to be heard when the jury is not in the courtroom. These types of motions routinely occur during criminal trials. We saw several of these motions argued before the court while attending both of the sexual assault trials of Danny Masterson in Los Angeles.
Gentile and Schneider are still seeking to restrict the evidence the jury may hear. This includes information obtained when the FBI raided GPB Capital’s headquarters along with its Five Star Waste Management offices in NYC. Schneider is also seeking to exclude evidence obtain from his personal Gmail account which he was using to escape scrutiny by FINRA.
The Government has filed motions to prevent Gentile and Schneider from presenting testimony by certain experts that, prosecutors argue, could unduly prejudice the jury.
A document concerning discovery filed by the defense on November 17, 2021 indicates that Michael Cohn and David Rosenberg secretly recorded conversations with the defendants. This document further informs us that key witnesses, including Scientologists and GPB Capital employees Manuel Vianna and Dustin Muscato made statements to the Government:
Given the participation of Scientologist and attorney Stephen Hayes in Gentile’s attempted Memorial Day coup in 2022 to take back control of GPB Capital from Receiver, our question is to what extent Scientology’s Office of Special Affairs is involved in David Gentile’s criminal defense behind the scenes. In the attempted 2022 coup, Gentile attempted to appoint three of his cronies as Directors. This included his fellow Scientologist Matt Judkin who was a defendant in a Texas foreclosure assistance scam. Judkin and several other Scientologists signed a permanent injunction and paid $750,000 in restitution and fines to settle that case.
Receiver Joseph Gardemal stopped the attempted coup in court. Scientologist and attorney Steven Hayes then filed a pro hac vice application with the court. In his pro hac filing, Hayes stated that he needed to appear for his clients in order to file a request for mediation; respond to any opposition; and to appear on behalf of his clients if mediation was granted.
The problem is that Hayes’ clients are non-parties to the case and thus have no standing to request mediation or anything else. Accordingly, Judge Scanlon delivered a scathing rebuke to attorney Hayes and schooled the dilettante in basic points of law:
Steven Hayes has been active for the Church of Scientology in several ways. As reported by Tracey McManus of the Tampa Bay Times, Hayes is very involved in all of the Clearwater land purchases made by Scientologists:
The Tampa Bay Times reported earlier this month that limited liability companies managed or operated by members of Scientology have bought 45 parcels in the North Marina Area bordering downtown since July 2019. The companies paid $11.8 million in cash but have done little with the mostly undeveloped lots and vacant buildings.
The pattern mirrors what occurred downtown between 2017 and 2019, when companies managed by parishioners purchased 100 properties and have since kept about half of them empty.
…[Steven] Hayes is one of two parishioners who manage or operate the companies that bought the 45 properties in North Marina since 2019.
The trial is expected to continue for many more weeks. The Government is presenting its case and then the defendants will present their case. The defendants are expected to argue that no crime was committed because investors were told in private placement memorandums that they could be paid “distributions” from invested capital. This is, by definition, a Ponzi scheme. So one question is this: Can a contract make a Ponzi scheme legal? Based upon the legal filings we have downloaded and read from Pacer, it appears this is why, in part, the defendants want experts to testify.
Below is an affidavit from FBI agent Jennifer Riker on the search warrant executed on GPB Capital. It is well worth reading as it goes to the alleged GPB Capital fraud and information contained in Jeffry Schneider’s personal gmail account. That Schneider was using his personal email account in an attempt to keep information out of his official Ascendant Capital email certainly seems incriminating:
GPB.Capital.262-1