GPB Capital Update on Investigation
According to reports yesterday, Michael Cohn, former chief compliance officer at private equity firm, GPB Capital Holdings, pleaded guilty to a misdemeanor on Tuesday.
Cohn, 61, was reportedly charged in February 2019 with stealing information about a probe into GPB Capital while he was reportedly still working for the SEC as a compliance examiner. Cohn reportedly pled guilty to theft of government property before U.S. District Judge Gary Brown in Central Islip, New York.
Federal prosecutors alleged that during talks with GPB about potential employment with the firm, Cohn told GPB executives that he had inside information about an SEC investigation into the company, which they claim he shared. Cohn, who will be sentenced in January 2021, denied the allegations.
GPB Capital has been under investigation by various regulators, including the SEC, the Financial Industry Regulatory Authority and the FBI since 2018.
More recently, the Massachusetts Securities Division charged GPB in May 2020 with allegedly violating state securities laws, after an investigation found that the company allegedly issued marketing materials to more than 180 Massachusetts investors which contained material misstatements and omissions.
There have been numerous lawsuits filed against GPB in the past few years, alleging serious financial misconduct and accusations of an alleged Ponzi scheme.
The firm has reportedly raised $1.5 billion in investor equity through various private placement offerings in the automotive retail and waste management sectors. Although one of its funds made a special distribution earlier this year, the firm has not paid any other distributions since 2018.
Filing a Complaint against your Brokerage Firm
If you have suffered losses investing in a GPB Capital offerings you may be able to file a complaint against your brokerage firm. Please call the securities attorneys at The White Law Group for a free consultation at 1-888-637-5510.
These claims are distinct from the class action filed directly against GPB Capital and could be pursued concurrently.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm and its representation of investors, visit https://www.whitesecuritieslaw.com.