OAKLAND, Calif.–(BUSINESS WIRE)–The Department of Justice has charged GPB Capital managing director and chief compliance officer, Michael S. Cohn, with obstruction of justice and a variety of other criminal charges related to an ongoing SEC investigation of GPB. Gibbs Law Group has filed a GPB Capital class action lawsuit and is pursuing legal claims on behalf of GPB investors against the brokerage firms that sold GPB investments.
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According to the indictment, the GPB Capital executive is accused of accessing compromising information about an ongoing SEC investigation into GPB Capital while working as a compliance examiner in the SEC, and then sharing that information with GPB’s senior management. Four days later he was hired by GPB for a $400,000 per year position, according to a CNBC news report.
These GPB criminal charges come amid a variety of legal investigations and revelations at GPB Capital. In 2018, GPB missed an SEC filing deadline for one of its funds. Soon after, it announced that it was suspending investor redemptions to focus on accounting and financial reporting issues, and later reported that its auditor resigned. In early 2019, the FBI raided GPB Capital’s New York offices unannounced and collected material. According to media reports, a number of regulators and legal authorities have launched investigations into GPB, including the FBI, SEC, and FINRA.
As for the value of GPB Capital investments, the company announced that at the end of 2018, its funds had declined in value by 25% to 73%. The values GPB has disclosed are not audited, and the company has still not revealed the true and current value of the funds for 2019.
What Should GPB Investors Do?
Investors should not wait to take action. If you invested in a GPB fund, you may be able to recover your losses. Visit our website or contact our securities team directly at (888) 410-2925 to speak privately with a securities attorney to learn about your legal options.
About Gibbs Law Group
Gibbs Law Group is committed to protecting the rights of investors and consumers nationwide who have been harmed by corporate fraud and misconduct. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Titans of the Plaintiffs Bar,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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