Financial Post CEO David A. Bohn is under scrutiny by the Federal Trade Commission, and his firm, Sun Capital, is in the crosshairs of a complaint.
The FTC’s complaint says that Sun Capital misled investors about the firm’s “bulk” emailing practices.
The complaint alleges that Sun was “promoting its emailing and unsubscribing practices to potential investors in order to raise their money,” according to a statement from the FTC.
Sun Capital says that it is “pleased” with the FTC’s action and plans to defend itself against the complaint.
“Sun Capital does not engage in any unlawful practices, including bulk emailing, and we have no intention of engaging in such practices,” a spokesperson said in an emailed statement to CNBC.
Sun was named as a defendant in the FTC complaint after the company failed to meet its reporting requirements, the FTC said.
Sun Capital said that the FTC is wrong to believe that it has violated the Sherman Act, the law designed to protect against unfair competition and unfair business practices.
The FTC has been investigating Sun Capital for a year and is investigating other firms, including one of Sun Capital’s largest competitors, Prosper Financial.
Bohn is an early investor in Sun and Sun Capital.
Shares of Sun fell $2.83, or 3.1%, to close at $50.50 in New York.