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.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.