Posts tagged ‘New York’
Investigation Into Possible Securities Fraud Involving Oppenheimer Funds
The White Law Group is investigating possible securities fraud claims involving the Oppenheimer Champion Income Fund (OCHBX, OPCHX and OCHCX) and the Oppenheimer Core Bond Fund (OPIGX). Although marketed to investors as conservative investments, the Champion Fund and Core Bond Fund were extremely risky ventures, investing in illiquid derivatives and high risk credit default swaps.
As a result of misrepresentations regarding these funds, many investors who thought they were receiving a conservative high income fund have suffered extraordinary losses. The Oppenheimer Champion Fund dropped 55% in November of 2008 alone. The Core Bond Fund lost more than 35 percent of its value in 2008 and another 10 percent in the first three months of 2009.
The verbal representations made by financial advisors, the marketing material used by these stockbrokers, and even the prospectus issued by Oppenheimer, portrayed the Oppenheimer Champion Income Fund and Oppenheimer Core Bond Fund as no riskier than the average high income fund. As such, the funds were improperly marketed to many investors (including retirees) that could not afford the risk to which they were then subjected.
The losses incurred in the Champion fund appear to be the result of large bets in high risk derivatives in the form of mortgage backed securities and credit default swaps. These are highly illiquid, speculative and complex agreements between parties to exchange cash flows in the future based on how a set of securities performs. It appears that the Champion Fund was betting that top-rated commercial mortgage-backed securities would rally in 2008. The Fund took an extraordinary risk that was not in line with the objectives set forth in the Prospectus, and a risk that was not disclosed to the investing public.
Additionally, the Champion Fund was also concentrated in credit-default swaps (CDSs). CDSs are basically insurance contracts that protect investors against bond and loan defaults. As the market for commercial properties deteriorated amid the slowing economy, the Fund’s value dropped precipitously. It appears that the Fund was even selling CDSs on troubled companies like Lehman Brothers Holdings Inc., American International Group Inc., General Motors Corp. and the Tribune Co. Many of those firms have since collapsed or filed for bankruptcy.
Investors from throughout the country have been affected by this Oppenheimer securities fraud, including investors in North Carolina, Florida, Georgia, Illinois, Texas, California, Washington, and New York. Many of the investors purchased the investment at the recommendation of their broker-dealer or financial advisor, and these entities have potential liability for failing to properly perform due diligence regarding the Oppenheimer funds prior to recommending them to their clients. Other investors purchased shares of the Oppenheimer Core Bond Fund through their 529 college savings plans, such as those in Oregon, Texas, Maine, Illinois and New Mexico, or through their retirement plans or annuities.
Apparently, a class action involving Oppenheimer’s Champion Income fund recently settled and victims will receive approximately 3 cents on the dollar. Given this paltry settlement, Oppenheimer victims may want to consider arbitration claims against the brokerage firms that recommended these investment. The class action opt out date is August 31, 2011.
If you have any information that may assist The White Law Group in its investigation into these Oppenheimer funds, please contact our Chicago, Illinois office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. The firm primarily handles these cases on a contingency fee. For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Andrew Mark Ruby, a former Morgan Stanley financial advisor in Hartsdale, New york, barred from securities industry.
FINRA recently announced that Andrew Mark Ruby, a former Morgan Stanley financial advisor in Hartsdale, New york, has been barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Ruby consented to the described sanction and to the entry of findings that from about February 2005 through March 2009, he stole blank personal checks and stock certificates and forged their signatures. The findings further stated that Ruby filled in the blank checks, inserting dollar amounts that totaled approximately $128,275, forged the customers’ signatures and then deposited the checks into an account under his control. Finally, the findings stated that Ruby sold the stock certificates and kept the proceeds (using the funds for personal expenses).
According to his FINRA Broker Report (CRD), Andrew Ruby was a registered financial advisor with Morgan Stanley from approximately 2000-2009. Prior to working at Morgan Stanley, Ruby was a registered representative with Painewebber Incorporated.
If you have questions regarding investments you made with Andrew Ruby or Morgan Stanley, or if you believe that you have been the victim of a securities fraud, The White Law Group may be able to help. The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. The firm has over 30 years of experience reviewing securities fraud claims and handles matters throughout the country and New York, including reviewing securities fraud cases in Hartsdale, Purchase, Syracuse, Buffalo, Albany, and New York City. To contact the firm, please call 312-238-9650 or 561-807-6804. Or, for more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Buffalo, New York Securities Fraud / Broker Fraud Attorney
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm.
The White Law Group has its offices in Chicago, Illinois and Boca Raton, Florida because of the obvious benefits of being located so close to the FINRA Dispute Resolutions offices in those cities (FINRA’s Southeast headquarters is located at Boca Center Tower 1, 5200 Town Center Circle, Boca Raton, FL 33486- less than one mile from our office, and FINRA’s Midwest headquarters is located at 55 West Monroe Street, Suite 2600, Chicago, IL 60603-1002- close to the firm’s Chicago office).
Having our offices located so close to FINRA’s regional headquarters has its advantages, particularly since all cases filed in the southeast portion of the United States are administered out of FINRA’s Boca Raton, Florida Dispute Resolution office, and all cases in the Midwest portion of the United States are administered out of FINRA’s Chicago, Illinois Dispute Resolution office.
Although located in Chicago, Illinois and Boca Raton, Florida, The White Law Group handles securities fraud cases throughout the country and New York, including reviewing securities fraud cases in Buffalo, Syracuse, Utica, Rochester, Schenectady, and Albany. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. To contact The White Law Group, please call 312-238-9650. Or, for more information about The White Law Group or securities fraud, you can also visit our website at http://www.whitesecuritieslaw.com.
Michael Lewis Axel, formerly of Tripp & Co., Inc. in New York City , barred from FINRA for securities fraud violations.
FINRA recently announced that Michael Lewis Axel, formerly of Tripp & Co., Inc. in New York City , has been barred from association with any FINRA member firm in any capacity. Without admitting or denying the findings, Axel consented to the described sanction and to findings that he misappropriated at least $624,000 from customers of his member firm. The findings further stated that, without the customer’s knowledge, authorization or consent, Axel initiated the issuance of checks from the customers’ accounts, obtaining the checks so that he could deliver them to the customers, and then forged the customers’ signatures and cashed the checks or deposited the checks into his personal bank account. Finally, the findings also stated that Axel effected unauthorized transactions in customers’ accounts without their knowledge, authorization, and consent.
Prior to working as a financial advisor for Tripp & Co., Inc., Michael Axel was a registered representative with Apple Financial Corporation (from 1985-1989) and Brodis Securities Incorporated (1983-1985).
If you have questions about investments you made with Michael Axel, or if you believe that you have been the victim of a securities fraud, the Law Offices of David A. Carter, P.A. may be able to help. David A. Carter is a securities lawyer based in Boca Raton, Florida. He reviews securities fraud cases throughout the country and Northeast, including reviewing securities fraud cases in New York, New Jersey, Pennsylvania, Vermont, Maine, Massachusetts, New Hampshire, Rhode Island, and Connecticut. For more information on the firm’s securities fraud practice, please visit http://www.carterpa.com. To contact the Law Offices of David A. Carter, P.A., please call 561-750-6999 or email us at contact@carterpa.com.
BGC Financial, L.P. (a FINRA broker-dealer based in New York City ) fined and censured by FINRA
FINRA (formerly the NASD) recently announced that BGC Financial, L.P. (a FINRA broker-dealer based in New York City ) was censured and fined $10,000. Without admitting or denying the findings, BGC Financial consented to the entry of findings that it failed, within 90 seconds after execution, to transmit last sale reports of transactions in designated securities to the FINRA/NASDAQ Trade Reporting Facility (TRF). The findings further stated that BGC Financial failed to report the correct symbol indicating the capacity in which it executed transactions in reportable securities to the TRF, and also failed to report the correct execution time for transactions in reportable securities. This is not the first time that BGC Financial has been investigated by a regulatory agency for possible securities violations or securities fraud.
According to the firm’s FINRA Broker Report (CRD), BGC Financial has been the subject of at least 6 regulatory investigations for violations of securities laws.
If you have questions about investments you made with BGC Financial or believe that you are the victim of a securities fraud, the Law Offices of David A. Carter may be able to help. David A. Carter is a South Florida based securities fraud attorney that reviews securities fraud cases throughout the country and Florida, including securities fraud cases in Delray Beach, Boynton Beach, Boca Raton, Fort Lauderdale, West Palm Beach, Jupiter, and Vero Beach. For more information, please contact us at 561-750-6999, or email us at contact@carterpa.com.