LAWSUITS NEWS & LEGAL INFORMATION
Oppenheimer & Co.
Fall River, MA: (Jul-10-07) Secretary of State William Galvin brought a lawsuit against Oppenheimer & Co., alleging that the company failed to properly supervise a broker who allegedly forged checks to gain access to an elderly Fall River couple's account. The suit follows a complaint that was filed last summer against Oppenheimer and Stephen Toussaint, a former Oppenheimer broker who lived in Wellesley and acted as an investment adviser to the Piteras. Galvin claimed Toussaint forged signatures on at least 19 checks to remove more than $350,000 from the couple's joint account to a bank account to Toussaint's.
State regulators also allege that Toussaint made numerous excessive trades in the Piteras' accounts in 2003 and 2004 simply to rack up commissions. Those trades, according to state regulators, generated more than $800,000 in commissions from the Piteras' account over a roughly two-year period.
In a settlement reached, Oppenheimer has agreed to pay a $1 million fine to settle Secretary of State William Galvin's accusations. The New York-based investment firm also agreed to pay $135,000 in restitution to Fall River resident Doris Pitera as part of its settlement with Galvin. Oppenheimer, which has branches in Boston and Fall River, had previously agreed to pay an additional $987,500 to Pitera, whose husband William died in 2005, to settle a related arbitration claim. [WELLESLEY TOWNSMAN: BROKER FRAUD]
Published on Jul-11-07
State regulators also allege that Toussaint made numerous excessive trades in the Piteras' accounts in 2003 and 2004 simply to rack up commissions. Those trades, according to state regulators, generated more than $800,000 in commissions from the Piteras' account over a roughly two-year period.
In a settlement reached, Oppenheimer has agreed to pay a $1 million fine to settle Secretary of State William Galvin's accusations. The New York-based investment firm also agreed to pay $135,000 in restitution to Fall River resident Doris Pitera as part of its settlement with Galvin. Oppenheimer, which has branches in Boston and Fall River, had previously agreed to pay an additional $987,500 to Pitera, whose husband William died in 2005, to settle a related arbitration claim. [WELLESLEY TOWNSMAN: BROKER FRAUD]
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