MIAMI and LOS ANGELES, September 23, 2021 (GLOBE NEWSWIRE) – National investment fraud law firm Dimond Kaplan & Rothstein, PA (“DKR”) (http://www.dkrpa.com) is investigating potential claims against a brokerage firm Oppenheimer & Co., Inc. (“Oppenheimer”) (NYSE: OPY) on behalf of clients who have invested in Horizon Private Equity III (“Horizon”). The United States Securities and Exchange Commission (“SEC”) has filed a complaint against former Oppenheimer broker John Woods and Woods’ investment advisory firm Livingston Group Asset Management Company d / b / a Southport Capital (“Southport”), alleging that Woods ran Horizon as a Ponzi scheme for over a decade.

Woods reportedly solicited a significant number of Oppenheimer clients to invest in Horizon when it was registered as a broker with Oppenheimer. The SEC alleged that Woods defrauded more than 400 investors out of more than $ 110 million.

The alleged Ponzi scheme

According to the SEC complaint, broker John J. Woods began his Ponzi scheme in 2008 while he was a broker at Oppenheimer. The SEC has alleged that Woods often targets older investors and promises guaranteed returns of 6-7% for two to three years.

Woods has reportedly told investors that Horizon will generate returns by investing in government bonds, stocks or small real estate projects. Investors were not told that their money would be used to pay “investment returns” to previous investors. But the SEC says that’s exactly what Woods did. That is, the SEC accuses Woods of running a classic Ponzi scheme by using new investor money to pay supposed returns on investment to previous investors. The SEC also claims that Horizon has not generated significant returns on legitimate investments. Millions of dollars in investor assets remain untraceable.

Oppenheimer may have violated his obligations to Oppenheimer clients

It was reported that Oppenheimer knew Woods was exploiting Horizon and did not fire Woods when he learned that Woods was behaving inappropriately. Rather, Oppenheimer allowed Woods to resign voluntarily. We understand that Oppenheimer has not contacted Woods customers who have invested in Horizon to inform them of Woods’ misconduct.

Oppenheimer was required to oversee the activities of its brokers and investment recommendations. “This oversight function is vital in protecting clients from broker misconduct,” said Jeffrey Kaplan, partner of DKR. Oppenheimer can be held liable for investor losses resulting from a failure to supervise Woods. Brokerage firms also have disclosure obligations to their clients. Oppenheimer can be held responsible for losses incurred by Horizon investors as a result of failure to notify clients of Woods’ misconduct.

FINRA Arbitration Claims May Be More Favorable Than a Class Action

While a class action lawsuit has been filed against Oppenheimer on behalf of Horizon investors, it may not be the best way for many Horizon investors to recoup their losses. A FINRA arbitrage request may be a better alternative for many investors looking to recoup their losses.

Class actions can take many years, and loss recoveries in investment fraud class actions are often far lower than recoveries obtained by investors who file their own FINRA arbitration claims. FINRA arbitration cases are often resolved within 12 to 18 months and are generally more profitable than a class action lawsuit. Any investor who has lost $ 100,000 or more in Horizon Private Equity III should consider filing for FINRA arbitration to recoup their losses.

Speak to an investment fraud attorney at Dimond Kaplan & Rothstein

Current and former Oppenheimer or Southport clients who have invested in Horizon Private Equity III are encouraged to contact Dimond Kaplan & Rothstein, PA for a FREE case assessment.

DKR has extensive experience representing victims of Ponzi schemes and other investment fraud. The company has recovered millions of dollars for the victims of the Ponzi scheme across the United States and the company will aggressively pursue claims to recover your losses.

DKR represents clients nationwide from offices in Miami, Los Angeles, West Palm Beach, New York, Detroit and Naples. Translation services are available.

Contact:
Jeffrey B. Kaplan, Esq.
[email protected]
(888) 578-6255

Miami office
2665 S. Bayshore Drive
Penthouse 2B
Miami, Florida 33133

Los Angeles Office
2029 Century Park East
Plaza Tower of the Century
Office 400N
Los Angeles, California 90067