Oppenheimer Portfolio Enhancement Program (PEP) Investment Loss Options

Oppenheimer Portfolio Enhancement Program (PEP)

Erez Law is currently investigating Oppenheimer & Co. Inc. brokers across the country who recommended their clients invest in the Oppenheimer Portfolio Enhancement Program (PEP). It is alleged that investors across the country, many of whom sought a means to generate a passive income stream, lost significant money in their investment portfolios.

What is the Oppenheimer Portfolio Enhancement Program (PEP)?

Sold as a hedged investment, the PEP was allegedly offered to its best clients as an opportunity to generate an extra 5% on its portfolio by borrowing money on margin to participate. Investors were required to invest a minimum of $1.25 million in PEP.

PEP investments were successful in market conditions that were low volatility combined with low interest rates. Without these exact market conditions, investors suffered tremendous investment losses. For instance, it hedged bets on indexes, including the S&P 500, allowing investors to see returns of up to 5% annually.

Regrettably, many investors suffered significant investment losses. As a result, Oppenheimer & Co. closed the fund.

It is alleged that investors invested, among others, in private equity investments, including Alkeon 1 and Alkeon 2, sometimes on margin. Investments such as these are illiquid and speculative investments and not suitable for retail investors.

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.

Contact Our Nationwide Investment Loss Lawyers Today

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.

Related case: John Woods Horizon Private Equity Ponzi Scheme