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Oppenheimer Investors Class Action Lawsuit Overview:
- Who: A group of investors has lodged a class action lawsuit against Oppenheimer & Co., Inc
- Why: They claim that the investment firm helped one of its advisors run a $110 million Ponzi scheme for more than a decade, then failed to report the fraud to authorities.
- Where: The class action lawsuit was filed in Georgia federal court.
Oppenheimer & Co, an international investment firm, helped one of its advisors operate a Ponzi scheme that stole $110 million dollars from investors over more than a decade, a new class action lawsuit alleges.
The investors, represented by the company 6694 Dawson Blvd, LLC, claim Oppenheimer went so far as to let the advisor, John J. Woods, quietly resign in late 2016 without revealing the wrongdoing in an attempt to conceal the Ponzi scheme from regulators and the investing public.
The plaintiffs claim Woods founded “Horizon Private Equity, III, LLC” in 2008 while working as an investment advisor for Oppenheimer, at which time he began marketing the unapproved security to Oppenheimer’s customers and the general investing public.
The plaintiffs — who say they invested $200,000 into Horizon Private — want to represent themselves and a nationwide Class of consumers who invested in Horizon Private between 2008 and the present.
Firm Let Ponzi Scheme Operate Next Door, Defrauding Oppenheimer Investors
Oppenheimer was well aware of Woods’ scheme, say the investors. In fact, he opened an office for Horizon Private right next door to the firm’s branch office, according to the class action lawsuit, which says Oppenheimer also actively aided members of Woods’ family — who also worked as advisors at Oppenheimer — in funneling money into Horizon Private.
“Woods and other Horizon Private Equity fundraisers walked freely between the two offices and mingled on a daily basis with the Oppenheimer branch manager charged with supervising Woods,” states the investors’ class action lawsuit.
The plaintiffs claim Horizon Private continued taking Oppenheimer investors’ money for almost five more years through Southport Capitol, a nationwide Registered Investment Advisory firm.
The Securities & Exchange Commission (SEC) brought civil action against Woods, Southport Capitol, and Horizon Private in August for violations of federal securities fraud, according to the class action lawsuit, which says the SEC sought emergency relief in the form of asset freezes, appointment of receivership, and a full accounting.
The SEC’s Complaint found that Woods had allegedly stolen $110 million from unsuspecting investors over more than a decade and that “many of the victims are elderly retirees who were preyed upon,” by Woods and other advisors, according to the Oppenheimer class action lawsuit.
Plaintiff claims the SEC found that Horizon Private, as of July 1, has liquid assets worth less than $1 million and owes investors more than $100 million in principal. A federal judge in Georgia temporarily froze Horizon Private’s assets last week.
6694 Dawson Blvd LLC alleges the defendants committed negligent misrepresentation, breach of fiduciary duty, and aiding and abetting fraud, among other things. It is demanding a jury trial and seeking relief in the form of damages for themselves and all Class Members.
A similar class action lawsuit was filed last month alleging Interactive Brokers allowed fraud to happen on its platform by helping “prop up” a $23 million ponzi scheme being run by one of its former brokers.
Have you invested in Horizon Private Equity or ever done business with Oppenheimer & Co? Let us know in the comments!
The plaintiff is represented by Craig H. Kuglar, Esq of The Law Offices of Craig Kuglar, LLC, and John S. Chapman, Esq, Jason T. Albin, Esq, and Philip L. Vujanov of Chapman Albin LLC.
The Oppenheimer Investors Class Action Lawsuit is 6694 Dawson Blvd, LLC v. Oppenheimer & Co., Inc., et al., Case No. 1:21-cv-03625, in the U.S. District Court for the Northern District of Georgia.
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12 thoughts onOppenheimer Hid $110 Million Ponzi Scheme, Says Investors’ Class Action
We invested with Southport Capital in Mount Airy NC
eventually ended with Horizon Private Equity III.
We would like info.
We invested also
Imagine working 11 years at Oppenheimer and getting only a 41000 dollar salary a year. Also paying over 600 family medical insurance provided by this “great” company. Your check is less than 1000 every 2 weeks. And you live in Nyc. Welcome to Oppenheimer Operations Department.
And yes ive been interviewing with other companies.
Oppenheimer & Company management and the rest of the higher ups dont give a damn about their employees. They work us hard and never give a thanks or raise. They keep the money for themselves. Boss man Leon took over a conference room to nake it into his office cause apparently he thought his old office wasnt good enough. He says hello to only certain employees .. if you get my drift. So many people have quit in the past year and they dont care they just find someone else to pay them less.
I work at Oppenheimer & Co in Nyc. They rob their workers aswell. Operations department barely make 50,000 salary a year. Management are nasty beings and put down their employees constantly. They make racist remarks and never give raises. Workers are called expicits.
They only mention Opco in the news if its something good so if you can imagine this is swept under a rug at the office.
Add me please. I invested in Oppenheimer SteePath.
Add me l invested with John Woods an Horizon Private Equity lll, LLC, an Southport Capital, through Money Advisor Penny Flippen at Southport Capital, at first it was Richard Whitley, but Penny Flippen took over his position in the Mt Airy, North Carolina branch of Southport Capital, all frauded an orchestrated by John Justin Woods…
I invested with Oppenheimer at Southport Capital, 2013 until now, through advisor Britt Wright. I am devastated.
add me: Phyllis Boyd-VanHoy
I invested from 2013 until current
Add me
Please add me