Ex-JPMorgan Advisor Must Pay $27 Million Restitution
Former JPMorgan advisor Michael Oppenheim has been ordered to pay $27 million in restitution for clients’ money that he gambled away, Law360.com writes.
The fine is in addition to a five-year prison sentence and three years of supervised release Oppenheim received earlier this year, according to the legal news website.
In November, Oppenheim pled guilty to stealing more than $20 million from 10 of his largest clients, as reported previously.
He had originally pleaded to a sentence of up to 10 years in prison but U.S. District Judge Analisa Torres cited his gambling addiction and his care for a disabled daughter as reasons for a reduced sentence announced in March, according to Bloomberg.
Oppenheim, who at one point managed close to $90 million for around 500 clients at JPMorgan, had been wagering on football games as far back as 1993 and began stealing from his brokerage clients after losses of hundreds of thousands of dollars, the newswire writes.
In an effort to make back those thefts, Oppenheim began options trading but the effort didn’t pan out, as he lost as much as $2.7 million in a single day, according to Bloomberg.
In a scheme that lasted more than seven years, Oppenheim persuaded clients to withdraw up to millions of dollars from their JPMorgan accounts for what he said were low-risk bond investments but instead deposited their checks in his own accounts, the newswire writes.
To cover up missing funds from his clients, Oppenheim sent them falsified account statements, according to Bloomberg.
JPMorgan fired Oppenheim last April, as reported previously.