Oppenheimer & Co. has been ordered to pay $3.75 million for allegedly failing to properly supervise a broker that FINRA says defrauded dozens of clients and who also cheated the producers of a Broadway musical.
FINRA says the firm failed to supervise an ex-broker despite detecting unnecessary trades and overlooked other “red flags” indicating that Mark Hotton was wiring funds from customer accounts to businesses he owned or controlled.
For more information: http://www.wsj.com/articles/oppenheimer-ordered-to-pay-3-75-million-in-broker-fraud-case-1427389139