Oppenheimer & Co. – Broker Misconduct, Regulatory Actions & Investment Losses

The White Law Group is investigating potential claims involving Oppenheimer & Co., Inc. (CRD#: 249, SEC#: 801-887, 8-4077), a national broker-dealer headquartered in New York. According to FINRA’s BrokerCheck, Oppenheimer has 284 disclosure events, including 102 regulatory actions and 179 arbitrations.

The following is a review of regulatory actions, fines, and broker misconduct involving Oppenheimer & Co., as well as options for investors who have suffered losses.

Recent Regulatory Actions Involving Oppenheimer & Co.

• May 7, 2024 – $500,000 FINRA Fine for Supervisory Failures: FINRA sanctioned Oppenheimer for failing to supervise 490,000 transactions between 2012 and 2017 for over 14,000 clients. The firm failed to collect customer investment profile data, violating FINRA Rules 3110(a) (supervision) and 2111 (suitability).
• May 7, 2024 – $80,000 Fine for Transaction Violations: The firm was also fined for violations involving direct business and 11-Diary security trades, citing supervision and transaction procedure failures.
• May 10, 2023 – $14 Million Award to Ponzi Scheme Victims: FINRA ordered Oppenheimer to pay nearly $14 million for failing to supervise John J. Woods, a former broker who operated a $110 million Ponzi scheme through the Horizon Private Equity III fund targeting senior investors.
• December 2019 – $4.7 Million UIT Sales Supervision Failure: Oppenheimer agreed to pay $800,000 in fines and $3.87 million in restitution for failing to supervise $6.4 billion in unit investment trust (UIT) sales, often recommending early rollovers that resulted in excessive charges.
• November 2016 – $3.4 Million Sanction for Reporting Failures: FINRA fined Oppenheimer for late reporting of 365 internal disciplinary actions and failure to provide required documents in arbitration proceedings. The firm also overcharged 825 clients over $1 million on mutual fund sales.
• July 2016 – $2.25 Million ETF Fine: Oppenheimer was fined for failing to supervise sales of non-traditional ETFs and recommending unsuitable investments. The firm failed to enforce its own internal ETF restrictions, resulting in more than 30,000 inappropriate transactions worth $1.7 billion.
• February 2015 – $20 Million Settlement for Penny Stock Sales: Oppenheimer admitted wrongdoing and paid $20 million to resolve SEC and FinCEN charges related to the sale of unregistered penny stocks and aiding offshore firm Gibraltar Global Securities in circumventing U.S. securities laws.
• August 2012 – $1.4 Million AML and Penny Stock Violations: FINRA fined Oppenheimer for failing to implement proper AML systems and allowing the sale of over a billion shares of unregistered penny stocks between 2008 and 2010. An independent consultant was appointed to review the firm’s procedures.

Broker Misconduct and Investor Complaints

Oppenheimer has employed several brokers who were later barred or subject to customer complaints. These include:

• Warren Ellwood Rowe Jr. (CRD#: 1065880): Barred by FINRA after 37 years in the industry, with 11 disclosures involving unauthorized trading and unapproved loans.
• Jeffrey Warren (CRD#: 2707969): Barred by FINRA in 2021 with five disclosures, including allegations of unsuitable investments and misrepresentation.
• Michael Howard Rosenmayer (CRD#: 2352488): Still registered with Oppenheimer, Rosenmayer has 24 disclosures, including a pending $500,000 dispute filed in April 2025 for unsuitable investments.
• David Krumrey (CRD#: 4121845) : Barred in 2018 after being terminated by Oppenheimer in 2017 for attempting to settle a complaint privately. He has six customer complaints since 2017.
• Maximilian Santos (CRD#: 3030271): Barred in 2016 after structuring transactions to avoid bank reporting requirements and sharing confidential client info via non-firm email.

Recovering Investment Losses Involving Oppenheimer & Co.

Brokerage firms like Oppenheimer & Co. have a legal duty to supervise their financial advisors and protect customers from misconduct. When brokers engage in fraud, make unsuitable recommendations, or misrepresent investments, the firm may be liable for resulting losses.

If you invested with Oppenheimer & Co. and believe you were a victim of broker misconduct, you may be able to file a FINRA arbitration claim to seek recovery of losses.

Free Consultation with a Securities Fraud Attorney

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. We represent investors in FINRA arbitration claims nationwide.

Call 888-637-5510 for a free consultation to discuss your potential claim.

Frequently Asked Questions (FAQs)

1. Can I sue Oppenheimer & Co. for investment losses?
   If your broker at Oppenheimer recommended unsuitable investments, committed fraud, or engaged in misconduct, you may be able to recover losses through a FINRA arbitration claim.
2. What is the Horizon Private Equity III Ponzi scheme?
   It was a $110 million fraudulent scheme led by former Oppenheimer broker John Woods, targeting elderly investors. Oppenheimer was held liable for failing to supervise Woods and was ordered to pay nearly $14 million.
3. How do I check if my Oppenheimer broker has past complaints?
   You can search your broker’s FINRA record using the BrokerCheck tool. If you find multiple disclosures or unresolved disputes, you should contact a securities attorney.