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Oppenheimer Fined $2,500,000

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Oppenheimer & Co. was fined $2,500,000 and ordered to pay another $1,250,000 in restitution to damaged customers, by regulators for failing to supervise a stockbroker who stole more than $6,000,000 from customers and excessively traded their accounts. That stockbroker is now barred from the industry, but Oppenheimer failed to comply with its compliance procedures and detect the actions of the stockbroker. Oppenheimer & Co. failed to conduct an adequate investigation into the stockbroker and failed to see “red flags” and to put the stockbroker on heightened supervision. Oppenheimer failed to investigate twelve red flags, including prior reports of criminal charges against the stockbroker.

Part of Oppenheimer’s supervision system detected that the stockbroker was trading multiple customer accounts at levels considered presumptively excessive trading (i.e. churning or overtrading) yet Oppenheimer filed to act on that information. Oppenheimer filed to act on wire money transfers from customer’s accounts and the stockbroker, and other outside business activities of the stockbroker. Oppenheimer’s failure to act on the exception reports that its compliance system did detect was a significant contribution to the damage to the customers. Oppenheimer’s inadequate procedures related to excessive trading contributed to its failure to reasonably supervise the stockbroker.

The legal department of Oppenheimer failed to provide required documents in arbitration, and failed to timely make 320 required updates to reporting filings designed to protect the investing public. The Oppenheimer legal department was on notice that the firm was failing to make important required legal disclosures, and failed to make those filings, even after Finra required it to do so. Oppenheimer failed to timely respond to even the regulator’s requirements for providing documents, in proper formats, when the regulator itself directly requested those documents, for more than two years. March, 2015 (See 2009017408102)

Contact StockBrokerLawyer now for a free, confidential review of your losses, and if they can be recovered. The passage of time is always used as a defense, don’t delay, contact us now by calling (888) 986-9010, or emailing on the form provided. We will respond as soon as possible, and having an independent no-cost review will help answer your questions.


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