This week’s update on GPB Capital reveals that Toni Caiazzo Neff, who previously worked as a compliance officer for a broker-dealer, reportedly faced multiple strategies intended to quiet her following her expression of concerns regarding GPB Capital.
For those not aware, GPB Capital has had a series of negative news that sounds like something out of Hollywood. In the last year, they have been accused by a former business partner of running a Ponzi-scheme, investigated by the FINRA and SEC, raided by the FBI and had their compliance officer arrested. There has been
GPB Capital Purshe Kaplan Sterling Whistle-Blower Lawsuit
In 2016 Neff worked at Purshe Kaplan Sterling as in compliance when she was asked to do due diligence on GPB Capital. She recommended that Sterling have nothing to do with them. Management at Sterling overrode her and decided to sell GPB Capital Funds. Neff then reported the situation to Finra and was fired.
Her federal whistle-blower lawsuit against Sterling was dismissed last year because she went to FINRA first. Neff recently came forward after the arrest of Michael Cohn, GPB Capital’s Compliance officer.
GPB Capital Scare Tactics
She says that since Cohn’s arrest, GPB Capital and people have been using scare tactics to intimate and silence her. Neff says people have been following her and messing with her car.
The GPB Capital story is far from over.
GPB Capital Investigation
By way of background, Mr. Cohn began his employment with GPB Capital in October 2018, and GPB Capital waited until January 2019 to issue a press release announcing his employment. In what now appears to be an erased and de-indexed website page GPB Capital was (at that time) touting Mr. Cohn and his 30 years of compliance and other securities industry experience, most recently as an SEC compliance examiner within the SEC’s enforcement division and its asset management unit where he investigated and supported enforcement actions against registered funds and private funds for violations of U.S. securities laws.
Many investors at the time viewed this as a positive move for GPB Capital, believing that an experienced SEC examiner likely would not take a job at GPB Capital if there were problems. Thus, this event is significant as it goes to show that such a common-sense conclusion was merely superficial and may very well have failed to account for personal greed or other factors.
In March 2019, the FBI raided the GPB Capital offices. GPB Capital has tried to downplay that event as a so-called unannounced visit by the FBI, and one in which GPB Capital was cooperative with handling. Again, that description appears to barely scrape the surface. This is not like having your Aunt Jenny stop in on a Sunday afternoon to say “hello” and you “cooperate” by inviting her in for coffee. No, this is quite different, this is a federal criminal investigation unexpectedly showing up with a search warrant. In reality, GPB Capital had no practical choice but to cooperate.
