The former chief compliance officer at the $1.8 billion private investment firm GPB Capital Holdings last month was sentenced to nine months of home confinement after pleading guilty in September to theft of government property.
The executive, Michael Cohn, had faced up to one year in prison and felony charges, which was reduced to a misdemeanor. He was also fined $50,000, according to the sentencing filing from March 24 in federal court in Brooklyn, New York.
A former Securities and Exchange Commission examiner, Cohn was charged in October 2019 with obstruction of justice relating to an SEC investigation of GPB. He allegedly stole information from the SEC before he started working for GPB in October 2018.
Scott A. Resnik, Cohn's attorney, told InvestmentNews last year that the compliance officer never shared any confidential SEC information with the company.
The Cohn matter is separate from FBI and SEC fraud charges in February against three senior GPB executives, including its founder David Gentile, who is no longer with the company.
Gentile and two other GPB executives allegedly lied to investors about the source of money used to make an 8% annualized distribution payment to clients, according to the SEC’s complaint. About 60 broker-dealers sold the private placements to customers.
Since February, an interim CEO, Rob Chmiel, and an independent monitor, Joseph T. Gardemal III have been appointed to manage GPB and its partnership funds.
GPB told investors this week in a letter that it has hired Henderson, Hutcherson & McCullough, an independent valuation firm, to work on the analysis of its holdings. Two private GPB funds are almost three years late in releasing audited financial statements, raising serious questions about the companies.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
