More than 17,000 investors defrauded by “Ponzi-like scheme”

Business

The top U.S. securities regulator said on Thursday that it had charged asset management firm GPB Capital, as well as its owner and CEO and other executives and affiliated firms, for allegedly defrauding more than 17,000 individual investors in a “Ponzi-like scheme.”

The Securities and Exchange Commission said the firm raised over $1.7 billion in issuing securities that made 8% annualized distribution payments, but lied when it told investors the payments were generated by investments. According to the SEC, the distributions were actually paid for with investor money.