Oppenheimer Allowed Its Advisor To Steal Money For Years And Trick Helpless Investors
Global investment management firm Oppenheimer & Co. is accused of allowing and helping one of its employees to start and run an illegal Ponzi scheme under its guise, which ended up scamming more than $110 million from company investors.
According to the latest class action, Oppenheimer & Co. allegedly let one of its company advisors, John J. Woods, set up and run an investment scam that tricked many of Oppenheimer & Co.’s investors.
Oppenheimer & John J. Woods Ponzi Scheme
The Oppenheimer & John J. Woods Ponzi Scheme Class Action Lawsuit is accusing the defendant Oppenheimer & Co. of permitting such illegal action from one of its workers. In fact, according to reports, the company ended up allowing Woods to quietly leave the company as soon as the issue was found out in a purported bid to hide the truth from the authorities and the public.
It was filed in a Georgia court by plaintiff 6694 Dawson Blvd, LLC, the class action share that Woods set up a company called ‘Horizon Private Equity, III, LLC’ while working as an advisor for Oppenheimer & Co.
The class action claim that Woods took away Oppenheimer investors’ money from the company under the noses of the company’s officials. The complainant, according to the case, allegedly invested $.2 million in Woods’ company. In fact, Woods opened up a branch office of their company besides Oppenheimer’s place.
Per the filing, Woods and other members of Horizon Private Equity mingled and interacted with Oppenheimer employees freely on a daily basis.
Woods’ illegal operations reportedly ran for over a decade, and Oppenheimer & Co. allegedly did not do anything to stop their advisor from funneling out money from investors.
Securities and Exchange Commission’s Actions Against Oppenheimer
The government, through the Securities and Exchange Commission or SEC, ended up filing a case against Woods and other people involved in the scheme. SEC officials estimated that Woods was able to steal about $110 million from Oppenheimer and was directed to Horizon Private Equity via another third-party entity.
Authorities claim that a majority of the owners of such funds were senior citizens and retirees who were completely unaware of the whole situation. SEC filed a legal case against Woods and others, which resulted in the full accounting, asset freezes, and appointment of receivership on the accused individuals.
The Oppenheimer & John J. Woods Ponzi Scheme Class Action Lawsuit is accusing Oppenheimer & Co. Inc. of different charges, including breach of fiduciary duty, negligent misrepresentation, and others.
The class action is also seeking to form and represent a Class group consisting of Horizon Private Equity, III, LLC investors who put in money on the company from the year 2008 up to the present.
Editor’s Note on Oppenheimer & John J. Woods Ponzi Scheme Class Action Lawsuit:
This class action report aims to provide you information regarding the latest case filed against Oppenheimer & Co. by company investors after their investments were illegally transferred and stolen by John J. Woods. A similar class action lawsuit was filed against Interactive Brokers concerning Haena Park’s fraud.
Case Name(s) & No.(s): 6694 Dawson Blvd, LLC v. Oppenheimer & Co., et al.; Case No.: 1:21-cv-03625
Jurisdiction: United States (U.S.) District Court for the Northern District of Georgia
Products/Services Involved: Ponzi Scheme
Allegation(s): Oppenheimer & Co. investors’ money and holdings were siphoned out by one of the company’s advisors, with company officials permitting the illegal act.
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