8kun Midnight Riders Posts (1)
#52680 at 2021-02-04 16:26:48 (UTC+1)
QR Midnight Riders #244:Q Get's The Jelly Roll! Edition
U.S. charges head of NY money manager GPB Capital with Ponzi-like fraud
The head of a New York money manager that raised $1.8 billion from investors was criminally charged on Thursday with running a Ponzi-like fraud to cover up poor performance, and diverting investors' money to boost their pay and fund luxury expenses. Authorities said GPB Capital Holdings LLC and its principal David Gentile promised investors consistent 8% annual returns plus occasional "special" distributions. They said GPB in fact suffered big losses, used new money to repay existing investors, and diverted funds for the personal use of its executives, including a Ferrari for Gentile. Two other individuals also face criminal charges, and the U.S. Securities and Exchange Commission and several state regulators filed related civil charges.
GPB did not immediately respond to requests for comment. Lawyers for the defendants could not immediately be located.
https://www.cnbc.com/2021/02/04/us-charges-head-of-ny-money-manager-gpb-capital-with-ponzi-like-fraud.html
from Sept 9 2020
Michael Cohn, Ex-GPB Capital Exec Pleads Guilty to Stealing SEC info
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.
https://www.whitesecuritieslaw.com/2020/09/09/michael-cohn-ex-gpb-capital-exec-pleads-guilty-to-stealing-sec-info/