FINRA sanctioned Oppenheimer & Co., Inc. $3.4 million for poor reporting practices, including internal discipline, providing information in arbitration cases and offering sales discounts to customers, FINRA announced on Thursday.
The firm was reportedly late making 365 filings with the Financial Industry Regulatory Authority Inc. regarding disciplinary actions it took against its own brokers and arbitration and litigation settlements over an eight year period, from 2008 to 2016.
The report also stated that from 2010 to 2013, Oppenheimer allegedly did not provide documents to seven claimants in an arbitration case against former registered representative Mark Hotton. (See Mark Hotton: American Greed) Oppenheimer has already paid $6 million to settle claims in that case.
In addition, Oppenheimer was fined for allegedly overcharging 825 customers $1,010,327 between 2009 and 2015 for mutual fund shares because it did not apply the appropriate fee waiver.
Reportedly, FINRA fined Oppenhiemer $1.575 million and required restitution to be paid: $703,122 to the arbitration claimants and $1,142,619 to its mutual fund customers.
The firm accepted the penalty without admitting or denying FINRA’s charges.
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