In May 2023, former clients of Oppenheimer & Co., Inc. won an award in a FINRA arbitration for $6.9 million in compensatory damages plus interest until the date of payment of the award as well as $6.9 million in punitive damages to seven claimants.
The causes of action included violations of FINRA Rules; breach of fiduciary duty; aiding and abetting breach of fiduciary duty; breach of contract and breach of the duty of good faith and fair dealing; unlawful sales of securities; and respondeat superior/agency by estoppel liability. The causes of action are related to claimants’ investments in Horizon Private Equity III. The FINRA arbitration hearing was conducted in Orlando, Florida.
According to the award, “Testimony of Claimants’ expert showed that Respondent engaged in conduct constituting gross negligence by failing to supervise its employees, J. Woods, Mike Mooney, Jim Woods and Iris Israel, such that the Horizon Ponzi scheme was allowed to operate out of Respondent’s Atlanta, Georgia, branch office. The failure to supervise consisted of, among other things, failing to investigate or inadequately investigating multiple red flags that should have alerted Respondent to the Ponzi scheme, relying on the self-serving statements of employees concerning the red flags and facilitating Horizon’s accounting, investing and payments of dividends to investors.”
Additionally, it was found that their conduct constituted gross negligence under Florida Statutes. Testimonials described alleged misrepresentations and a conscious disregard or indifference to the rights of the claimants.
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 its customers.
How to File a Claim Against Oppenheimer & Co., Inc.
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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