Bill Myers and Graham Bippart

Toni Caiazzo Neff says she lost her job at New York-based Purshe, Kaplan Sterling because she spoke out against its decision to sell GPB Capital at 8% commissions, having rejected the fund twice before.

Regulators have filed the first government suit against GPB Capital, which has been beset by private lawsuits accusing it of fraud.

Laurence Allen of ACP Investment Group stands accused of defrauding investors and misappropriating more than $13m.

At its peak, more than five dozen broker-dealers signed on to sell GPB's funds. The B-Ds earned commissions of between 8% and nearly 12%, SEC records show.