Oppenheimer fails to overturn $36.7 million arbitration loss

Oppenheimer fails to overturn $36.7 million arbitration loss
The firm lost the huge arbitration decision, which was decided by a Finra panel, last year to eight investors who were sold a private equity fund by a former Oppenheimer broker, John Woods.
FEB 22, 2023

Oppenheimer & Co. Inc. at the end of January failed in its attempt to vacate or overturn in Georgia Superior Court a Finra arbitration panel award last year of $36.7 million.

Oppenheimer lost the huge arbitration decision, decided by a Financial Industry Regulatory Authority Inc. panel, in September, to eight investors who were sold a private equity fund by a former Oppenheimer broker, John Woods, near Atlanta. It is extremely rare for state court judges to overturn Finra arbitration awards.

In 2021, the Securities and Exchange Commission charged Woods with running a $110 million Ponzi scheme. He was a broker registered with Oppenheimer from 2003 to 2016, according to his BrokerCheck profile, with more than two dozen lawsuits pending.

Oppenheimer filed its motion to vacate the award on Oct. 6 with the Superior Court of DeKalb County, Georgia. The firm’s motion to vacate was based on, among other defects, arbitrator bias, failure to postpone the hearing to permit key witnesses to testify, and manifest disregard of the law, according to the company.

That effort came up short, according to a filing Jan. 30 with the SEC by Oppenheimer Holdings Inc., the publicly traded holding company for the broker-dealer.

The Georgia Superior Court judge "orally ruled to confirm" the arbitration award, according to the filing.

Oppenheimer said it may take its case to the Georgia Court of Appeals.

“Oppenheimer is disappointed in the court’s ruling and is considering an appeal to the judge’s ruling to the Georgia Court of Appeals,” an Oppenheimer spokesperson wrote in an email.

Shape up! How to improve the financial wellness of your employees

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.