Tags: Oppenheimer | fine | broker | theft

Oppenheimer Sanctioned for Missing Broker's Theft From Clients

Thursday, 26 March 2015 11:31 AM

Oppenheimer Holdings Inc. agreed to pay $3.75 million to settle regulatory claims that it failed to supervise a broker who stole money from clients and excessively traded their accounts, the brokerage industry’s self-regulator said.

Oppenheimer didn’t respond to “red flags” signaling that the employee, who no longer works there, was wiring money from customer accounts to his own, according to a statement from the Financial Industry Regulatory Authority. The company also failed to conduct a background check on the broker, which would have uncovered several customer complaints and criminal charges, Finra said.

“The combination of an unscrupulous broker and a lax supervisory structure can cause severe customer harm,” Brad Bennett, Finra’s chief of enforcement, said in the statement.

The broker, Mark Hotton, was barred from the industry in August 2013, Finra said. The New York-based company has paid more than $6 million to resolve claims related to the affected accounts and an additional $1.25 million in restitution to clients who suffered losses but didn’t file arbitration claims, Finra said.

Oppenheimer, which didn’t admit or deny wrongdoing, didn’t immediately respond to an e-mail seeking comment.

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Oppenheimer Holdings agreed to pay $3.75 million to settle regulatory claims that it failed to supervise a broker who stole money from clients and excessively traded their accounts, the brokerage industry's self-regulator said.
Oppenheimer, fine, broker, theft
184
2015-31-26
Thursday, 26 March 2015 11:31 AM
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