Oppenheimer Ordered To Buy Back $650,000 Auction Rate Securities

A Financial Industry Regulatory Authority (FINRA) arbitration panel in Los Angeles ordered Oppenheimer to buy back $650,000 worth of auction rate securities (ARS). The Toronto based firm is one of the largest sellers of auction rate securities to individual investors. The claimants had sought $700,000 in compensatory damages plus interest, attorneys’ fees and punitive damages. They alleged that the auction rate securities (ARS) were marketed and sold to them as being as safe as cash and highly liquid so that they would always have access to their money. This was obviously not the case. When the market froze in February 2008 all investors were denied access to their funds. The award called for Oppenheimer to rescind the sale of $650,000 worth of the ARPS and repurchase them from the claimants. It also ordered them to pay $18,441 for expert witness fees, $375 for the non-refundable portion of the filing fee and $18,000 in forum fees for the arbitration. (FINRA #09-01568; Jordan H. Moffet and Margot A. Trombley, Individually and as Trustees of the Moffet Family Trust v. Oppenheimer & Company, Inc.)

If you have suffered losses in auction rate securities (ARS), please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.

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