Oppenheimer's head muni bond trader suspended

David Sirianni was fined $100,000 and suspended for 60 days by Finra for overcharging customers.

Dec 9, 2013 @ 10:47 am

+ Zoom

Oppenheimer Holdings Inc. head municipal bond trader David Sirianni has been fined $100,000 and suspended for 60 days by the Financial Industry Regulatory Authority Inc. for overcharging customers.

Mr. Sirianni marked up bonds as much as 16% from July 2008 through June 2009, Finra said in a statement Monday. Oppenheimer also was ordered to pay a $675,000 fine and $246,000 in restitution, according to the regulator.

“Finra has no tolerance for firms or individuals who charge customers excessive markups,” Thomas Gira, Finra's head of market regulation, said in the statement.

The investigation involved 89 transactions in which the brokerage added more than 5% to the cost of the bonds, Finra said. Oppenheimer didn't disclose the markups to its customers, according to the regulator. The firm's supervisory system didn't flag the trades for review because it looks at same-day markups and in these cases, the bonds were held at least overnight, Finra said.

Mr. Sirianni declined to comment when reached by phone. Dennis McNamara, a lawyer for Oppenheimer, didn't immediately respond to a message seeking comment.

In one instance cited by the regulator, Oppenheimer bought Dowling College revenue bonds for 52.35 cents on the dollar on Dec. 9, 2008, and then sold them the next day for 14% more. On Dec. 11, Oppenheimer bought more securities of the college for 52.85 cents and 52.5 cents, which it flipped at a 13% markup.

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Why the bionic adviser is the way of the future

The bionic adviser is the way of the future. We spoke with Simon Roy of Jemstep to get his insights on how technology will continue to impact the industry.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

CFPs, including brokers, may have to adhere to a stricter fiduciary duty

CFP Board revises its standards and aims to beef up fiduciary requirements of certificants.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print