In a recent turn of events, a customer of Oppenheimer & Co. has been awarded $1.4 million in compensatory damages for their losses in the Horizon Private Equity III fund. This development comes after the filing of FINRA arbitration case 22-00866 last year, which involved an investigation into Oppenheimer & Co.’s sale of the Horizon Private Equity III fund to advisory clients.
The Ponzi Scheme and Its Impact
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The Securities and Exchange Commission (SEC) filed an emergency action in August 2021 to stop a $110 million Ponzi scheme allegedly operated by ex-Oppenheimer stockbroker John Justin Woods. The fraud involved Horizon Private Equity III, LLC, and was run through Woods’ registered investment advisor, Livingston Group Asset Management.
Oppenheimer’s History of Fines
Oppenheimer & Co. has faced fines in the past as well. In 2013, the company agreed to pay $1.43 million in fines to resolve charges related to the sale of unregistered penny stocks and inadequate safeguards. FINRA fined Oppenheimer $1.4 million for selling more than a billion shares of twenty low-priced, highly speculative stocks from 2008 to 2010.
The company has been penalized for various issues, including selling unregistered penny stocks, inadequate safeguards, and selling highly speculative stocks. Below are some notable instances of Oppenheimer’s brushes with FINRA:
Unregistered Penny Stocks and Inadequate Safeguards
In 2013, Oppenheimer agreed to pay $1.43 million in fines to resolve charges that it sold unregistered penny stocks and had inadequate safeguards in place. The company was found to have violated federal securities laws and FINRA rules by selling unregistered, non-exempt penny stocks in public offerings.
Selling Highly Speculative Stocks
FINRA fined Oppenheimer $1.4 million in 2013 for selling more than a billion shares of twenty low-priced, highly speculative stocks between August 2008 and September 2010. The regulatory authority found that Oppenheimer had inadequate systems in place to supervise the sale of these speculative stocks and failed to implement appropriate policies and procedures to prevent violations of federal securities laws and FINRA rules.
The Horizon Private Equity III Fund Losses
As mentioned earlier, an Oppenheimer & Co. customer was awarded $1.4 million in compensatory damages for their losses in the Horizon Private Equity III fund. This case stemmed from the filing of FINRA arbitration case 22-00866, which investigated Oppenheimer & Co.’s sale of the Horizon Private Equity III fund to advisory clients. The ex-Oppenheimer stockbroker, John Justin Woods, allegedly operated a $110 million Ponzi scheme involving the Horizon Private Equity III fund.
These cases demonstrate that Oppenheimer & Co. has a history of customer complaints and regulatory fines. It is essential for investors to be vigilant and seek professional help when dealing with investment firms. If you have concerns about your investments or suspect investment fraud, don’t hesitate to contact experienced professionals like Haselkorn & Thibaut and InvestmentFraudLawyers.com for guidance and assistance.
Haselkorn & Thibaut: Fighting for Investors
If you have experienced investment losses or suspect investment fraud, seeking help from experienced professionals is crucial. Haselkorn & Thibaut, InvestmentFraudLawyers.com, is a leading investment fraud law firm specializing nationwide in fighting for investors. With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn, and Thibaut have:
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Don’t Wait. Get Help Now
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