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.
A $141M judgment and a federal asset freeze collide over one shrinking pool
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
