Oppenheimer & Co.
Investment Fraud Attorneys Fight on Your Behalf
Oppenheimer Holding, Inc., historically a Canadian company, is the parent
company of Oppenheimer & Co., its brokerage subsidiary. It is listed
on the NYSE and is a registered broker-dealer and investment advisory
firm. In 2008, Oppenheimer acquired a major part of CIBC World Markets'
U.S. capital markets business. Oppenheimer Holdings also has recently
changed its jurisdiction of incorporation from Canada to the United States
and is planning to expand further into the southern U.S. states, extending
its influence in the U.S. financial arena.
Oppenheimer Holding, Inc. is licensed by the Financial Industry Regulatory
Authority, or FINRA. That means Oppenheimer is subject to certain laws
designed to protect investors and their assets. One of these laws obligates
Oppenheimer to monitor each one of their representatives to ensure they
are trading ethically, honestly, and in the interests of the client. When
Oppenheimer fails to supervise their brokers, it allows any unscrupulous
representatives to conduct fraudulent trading, which then causes investors
significant losses. When this happens, FINRA allows investors the right
to hold Oppenheimer legally liable to repay any damages caused.
History of Red Flags and No Oversight
Oppenheimer has had an unusual amount of activity the last 10 years, most
of it centering on one issue: an inability or refusal to supervise their
representatives effectively. The most significant demonstration of this
lack of oversight is in a case from this year – the hiring of Mark
Hotton. Hotton was hired by Oppenheimer in late 2005 despite a history
of fraud, a criminal record, and several customer complaints. In fact,
shortly after he was hired, Hotton was sued by his former business partners
for misappropriating $4 million. Later on, he was sued by another partner
for another incident in which he wrongly diverted $5 million more. Despite
Oppenheimer asserted that they had no reason to believe that Hotton was
a danger to their investors.
In 2007, Hotton began wiring money out of customer accounts to his outside
businesses. The 31 transfers totaled over $3 million, and while Oppenheimer
noticed this suspicious behavior,
they did not act. Though he violated both Oppenheimer and FINRA policies, he was not fired,
stopped, or even watched. For their incredible negligence and inaction,
Oppenheimer was fined by FINRA in the amount of $2.5 million in 2015.
Hotton’s behavior is an example of why FINRA requires oversight
over brokers, and why firms must be held responsible for them.
Our Experienced Lawyers Can Recover Your Losses
If you’ve been cheated out of your investments by fraudulent or negligent
behavior, either by your broker or his/her firm, let Meyer Wilson fight
for you. We have the experience and resources to file successful claims
against large financial institutions, no matter their size or pedigree.
While FINRA gives you the right to file claims against negligent firms,
their aim is policing and enforcement –
our aim is to reclaim what you have lost.
Contact our firm to explore your options. Call at (888) 390–6491 for a
free case evaluation.