FINRA fined Oppenheimer & Co. $3.4 Million for failures in reporting internal discipline, giving information in arbitration cases, and offering sales discounts to customers.
Between 2008 and 2016, the firm was on average four years late making 365 filings with FINRA, pertaining to disciplinary actions it took against its own brokers and arbitration and litigation settlements.
The regulator also said that from 2010 to 2013, Oppenheimer did not provide documents to seven claimants in an arbitration case against ex-registered representative Mark Hotton. Oppenheimer has already paid $6 million to settle the claims alleged in that case.
Additionally, FINRA said the firm overcharged 825 customers $1,010,327 between 2009 and 2015 for mutual funds shares because it did not apply the appropriate fee waiver.
FINRA issued a $1.575 million fine and forced Oppenheimer to pay $703,122 to the arbitration claimants and $1,142,619 to its mutual fund customers.
“It’s important for firms to ensure their supervisory programs are designed to comply with FINRA reporting requirements, and that their procedures provide adequate direction to their employees to make required filings,” said Brad Bennett, FINRA executive vice president and chief of enforcement. “FINRA uses this information to identify and initiate investigations of firms and associated persons that pose a risk to investors.”If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.