Oppenheimer & Co. Inc. broker Matthew Steinberg (CRD# 2430032) is accused of Oppenheimer Portfolio Enhancement Program (PEP) investment losses. He has been registered with Oppenheimer & Co. Inc. in Jenkintown, Pennsylvania, since 1994.
According to public records, a former client of Matthew Steinberg and Oppenheimer & Co. Inc. filed a FINRA complaint alleging breach of contract, breach of fiduciary duty, failure to supervise, and fraud, as well as violations of industry standards.
The client allegedly sought a way to safely generate retirement income and entrusted this request with his broker. The broker allegedly recommended he invest in PEP via a managed portfolio on a discretionary basis; the investment was purchased with borrowed money on margin against municipal bonds in which the client already owned. It is alleged that Matthew Steinberg and Oppenheimer & Co. Inc. recommended the client invest in a longer-term bond portfolio, which suffered multiple defaults and caused the client to suffer significant losses in his investment portfolio.
While the investment was allegedly identified as generating a 5% yield on the investment, this was regrettably not the case for the investor as he was not informed that the investment would only perform if in ideal market conditions where volatility and interest rate markets were low.
The client allegedly invested in illiquid and speculative private equity investments, Alkeon 1 and Alkeon 2, both on margin.
Matthew Steinberg Customer Complaints
He has been the subject of one customer complaint, according to his CRD report:
November 2023. “Claimant asserts claims of failure to supervise, breach of fiduciary duty, breach of contract, fraud, and violations of FINRA Rules relating to investments in municipal bonds and two private equity investments, as well as the use of margin in connection with those investments. From 4/1/2017 to Present.” The customer is seeking $2,500,000 in damages, and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Oppenheimer & Co. Inc. may be liable for investment or other losses suffered by Matthew Steinberg’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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