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Oppenheimer & Co. Inc.

Maddox Hargett & Caruso, P.C. is currently investigating potential claims on behalf of individual and institutional investors involving Oppenheimer & Co. Inc. These claims include: Oppenheimer brokers withholding information about the underlying risks of some investment products, improper allocation of account assets and/or selling unsuitable and complex investments to less sophisticated investors.

Headquartered in New York City, Oppenheimer Holdings Inc., through its various operating subsidiaries, purports to be a leading middle-market investment bank and full service broker-dealer that is engaged in a broad range of activities in the securities industry, including retail securities brokerage, institutional sales and trading, investment banking (both corporate and public finance), research, market-making, trust services and investment advisory and asset management services.

Through its Private Client Division, Oppenheimer provides financial services to retail and institutional investors through a network of approximately 1,233 financial advisers in 85 offices located throughout the United States.

Oppenheimer has been the subject of a large number of enforcement actions and proceedings, all of which have alleged the violation of various securities laws, rules and/or regulations, which have been commenced by the following regulatory authorities [1]:

U.S. Securities & Exchange Commission (SEC): Jun. 18, 2015 [3-16629]; Jan. 27, 2015 [3-16361]; Nov. 3, 2014 [3-16243]; Feb. 24, 2009 [3-13378]; and Sept. 30, 1996 [34-43054].

Financial Industry Regulatory Authority (FINRA): Jun. 7, 2016 [2013038180801]; Dec. 22, 2015 [2014041832801]; Dec. 22, 2015 [2013038149001]; Nov. 24, 2015 [2014041053201]; Oct. 7, 2015 [2012034713201]; Mar. 26, 2015 [2009017408102]; Jan. 6, 2015 [2011025957001]; Oct. 29, 2014 [2013037792401]; Feb. 19, 2014 [2011026125001]; Dec. 6, 2013 [2009018102501]; Jul. 15, 2013 [2009018261301]; May 6, 2013 [2009018668801]; Apr. 2, 2013 [2009018701501]; Jan. 2, 2013 [2010021596901]; Mar. 29, 2012 [2009018428701]; May 10, 2011 [2009018400501]; Oct. 12, 2010 [2008013630001]; Jun. 30,2009 [2008014261101]; Sept. 24, 2008 [2006005739601]; Jul. 30, 2008 [2007011878301]; Apr. 10, 2008 [2005001714501]; Jan. 16, 2008 [20060063726-01]; Dec. 21, 2007 [2007009509501]; and Oct. 16, 2007 [2006005906201].

National Association of Securities Dealers (NASD): Nov. 3, 2006 [2005001790701]; Jun. 30, 2006 [2005000235601]; Feb. 3, 2006 [E102003017701]; Jan. 9, 2006 [EAF0400720002]; Jan. 9, 2006 [2005000316701]; Apr. 26, 2005 [CE420050002]; Oct. 18, 2004 [CMS040156]; Dec. 23, 2003 [CMS030297]; Mar. 13, 2003 [CMS030039]; Apr. 15, 2002 [CMS020059]; Jan. 29, 2002 [C10020009]; Apr. 18, 2000 [CMS000075]; Apr. 4, 2000 [C100000042]; Mar. 31, 2000 [CMS000063]; Oct. 29, 1999 [CMS990129]; Jun. 18, 1998 [C10970151]; Apr. 23, 1997 [CMS960202]; Apr. 23, 1997 [CMS960226]; Apr. 17, 1996 [CMS950117]; Apr. 28, 1994 [CMS940036]; Mar. 7, 1994 [CMS940021]; Aug. 12, 1993 [CMS930042]; Dec. 9, 1986 [MS-456-AWC]; Nov. 18, 1976 [N-VS-235]; Oct. 13, 1974 [NY-1880]; Oct. 30, 1970 [NY-1309]; and Jul. 22, 1970 [NY-1234].

New York Stock Exchange (NYSE): Jun. 5, 2006 [N/A]; Dec. 14, 2005 [HPD-05-190]; Nov. 18, 2005 [HPD-05-181]; Mar. 26, 2001 [HPD-03-100]; Mar. 20, 1998 [HPD-98-48]; Jun. 26, 1992 [92-68]; Mar. 10, 1989 [N/A]; and Apr. 6, 1982 [82-30 & 82-31].

United States Treasury Department: Jan. 26, 2015 [2015-01].

Chicago Board Options Exchange (CBOE): Jul. 30, 2015 [15-0079/20150462954]; Dec. 21, 2012 [12-0121]; Apr. 21, 1987 [87-0006]; and Aug. 13, 1986 [87-0006].

International Securities Exchange (ISE): Jul. 27, 2012 [2010-087 & 2010-140].

Nasdaq: Jan. 30, 2015 [2012033488501].

Delaware: Jun. 25, 2015 [IPU 11-2-4].

Florida: Aug. 20, 2009 [0442A-S-07/09]; and Aug. 27, 2007 [0335-S-4/07].

Georgia: Jan. 6, 1993 [50-92-0505].

Iowa: May 5, 1993 [C93-03-392].

Kansas: Feb. 2, 1998 [97-3312/98E162].

Massachusetts: Nov. 18, 2008 [E-2008-0080]; Aug. 2, 2006 [E-2005-0195]; and Mar. 13, 1992 [E-90-118].

Missouri: Jun. 15, 2005 [AP-05-03].

New Hampshire: Jun. 9, 2011 [1-2010-0000017].

New Mexico: Nov. 20, 2014 [14-03-0028].

South Carolina: May 4, 2016 [14115 & 15062].

Oppenheimer has been cited by the U.S. Securities & Exchange Commission as a firm with a failed compliance culture, from top to bottom.

In a February 2015 Dissenting Statement issued by two (2) SEC Commissioners, Oppenheimer was cited by SEC Commissioners Luis A. Aguilar and Kara M. Stein for the firm’s “long and unfortunate history of regulatory failures, some more significant than others, but cumulatively indicative of a wholly failed compliance culture.”

In fact, this Dissenting Statement stated that “the facts demonstrate that Oppenheimer has a failed compliance culture, from top to bottom” and that the firm has “an entrenched culture of non-compliance” with the securities laws. [2]

Oppenheimer has been the subject of a large number of customer-initiated arbitration proceedings.

Oppenheimer has been a named party in more than 800 arbitration proceedings, the majority of which have, upon information and belief, been filed by current or former customers of the firm.

These arbitration proceedings have alleged the violation of various securities laws, rules and/or regulations as well as the violation of various common laws including, but not limited to, breach of fiduciary duty, breach of contract, negligence and fraud. [3]

Oppenheimer has been recently cited in an academic study for having the most financial advisors with a disciplinary history on their registration record.

A recent academic study, by business professors at the University of Chicago and the University of Minnesota (“The Market for Financial Adviser Misconduct”), found that more than one in seven financial advisers at Oppenheimer & Co. “have engaged in misconduct in their past” and that “almost one in five financial advisers at Oppenheimer & Co. have been disciplined for misconduct in the past.”

In fact, this academic study determined that, “as of May 2015, 19.60% of advisers working for Oppenheimer & Co. had received a misconduct related disclosure.” [4]

Since 1991, Maddox Hargett & Caruso, P.C. has represented the interests of individual and institutional investors in cases involving financial losses due to investment fraud, stockbroker misconduct or professional negligence.
If you are an individual or institutional investor who has any concerns about your accounts and/or investments with Oppenheimer & Co., please contact us for a no-cost and no-obligation evaluation of your specific facts and circumstances. You may have a viable claim for recovery of your investment losses by filing an individual securities arbitration claim with the Financial Industry Regulatory Authority (FINRA).

[1] These regulatory enforcement actions and proceedings, which were derived from Oppenheimer’s BrokerCheck report dated Jun. 13, 2016, indicate the approximate date that each action/proceeding was initiated and the docket number for each of the same.
[2] The complete Dissenting Statement can be accessed at https://www.sec.gov/news/statement/dissenting-statement-oppenheimer-inc.html.
[3] A partial listing of the arbitration proceedings in which Oppenheimer has been a named party can be accessed at http://www.finra.org/arbitration-and-mediation/arbitration-awards.
[4] The complete copy of this academic study can be accessed at https://economics.uchicago.edu/workshops/ Egan%20Mark%20The%20Market%20for%20Financial%20Adviser%20Misconduct.pdf.


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