Oppenheimer & Co. Forks Over $800k to Client for Unauthorized Trades
Advice firm Oppenheimer & Co. has been forced by Finra to pay a client $800,000 in damages after allegedly making unauthorized and unsuitable trades on a client’s behalf, according to documents from the self-regulator. The client, Robert Dekas, originally requested over $2 million in compensatory damage payments and $1.5 million in punitive and exemplary damages.
Finra ruled Oppenheimer & Co. to be in violation of charges including breach of fiduciary duty, misrepresentation, suitability, unauthorized trading, failure to supervise, negligence, and violation of Finra rules.
Dekas says Oppenheimer & Co. made unauthorized trades and invested in unfit investments, including various short funds and puts and calls.
BrokerCheck records further reveal Carter Worth, associated with Cornerstone Macro LLC and frequent guest on CNBC, Bloomberg TV and various other news shows, was a subject in Dekas’s complaint against Oppenheimer & Co.
Dekas apparently approached Worth in 2010 to take his account to Oppenheimer & Co. from Merrill Lynch after seeing Worth on CNBC Options Action and liking his recommendations. Worth then recommended Dekas a “series 7 salesperson” who followed some of the recommendations Worth made on shows such as CNBC Fast Money, CNBC Closing Bell, CNBC Options Action and CNBC Mad Money.
Finra has denied a request by Worth to expunge from his BrokerCheck file the registration records of non-parties involved in the in-person recorded evidentiary hearing of Dekas’s case against Oppenheimer & Co.