More evidence of corruption at GPB Capital Holdings stacks up as its Managing Director and CCO is indicted.
According to the indictment, when MICHAEL S. COHN left his position at the SEC to take a job with GPB, he allegedly stole sensitive and confidential information about investigations and brought that information into his new company. Furthermore, Cohn is accused of using his position at the SEC to promise GPB inside information during his employment negotiations. He allegedly disclosed information to members of management about the ongoing investigation.
United State Attorney Richard P. Donoghue states in the indictment that:
“When Cohn left the SEC to join GPB, he left with more than his own career ambitions. The proprietary information he allegedly retrieved—from databases he wasn’t authorized to access—included compromising information about a GPB investigation and sensitive details related to the same.” Full Department of Justice Press Release included below or can be read here.
The government’s case is being handled by the Office’s Business and Securities Fraud and National Security & Cybercrime Sections.
GPB has been the focus of multiple accusations, most recently a class action lawsuit that accuses it of failing to produce timely and accurate financial statements and keeping its investors in the dark. Unfortunately for those investors, they were not protected by their own brokers, and many brokers were lured to push GPB products because they received high broker fees.
If you are an investor who purchased a GPB Capital product, you may have a case against your broker for failing to offer you unbiased, accurate advice. Contact us to find out if we can help you recover losses due to securities mismanagement or broker-dealer misconduct.