FOR IMMEDIATE RELEASE
Jun 16 2005
Contact: Stacie Temple; David Cosgrove, (573) 526-5076; (573) 751-4704
Carnahan Enters into Consent Order for $122,050 with Oppenheimer & Co., Inc.
The order requires Oppenheimer to pay $63,000 in restitution and $59,050 to the Missouri Secretary of State's Investor Education and Protection Fund.
The order alleges that Oppenheimer failed to supervise an agent in Missouri, employed an unregistered investment adviser representative and employed an unregistered agent.
"These violations were uncovered during our Securities Division's on-site compliance examination of Oppenheimer. Compliance examinations of broker-dealers and investment advisers are just another tool being utilized by my office to provide protection to Missouri investors," said Carnahan.
Oppenheimer registered representative, William L. Evans, borrowed money from a customer in the amount of $70,000 and was delinquent in repaying the customer.
The customer sent a letter to Oppenheimer, which alerted, or should have alerted the company that Evans was borrowing money from a customer. This allegation should have been investigated by the firm. However, Oppenheimer was unable to provide documentation pertaining to the inquiry as requested by the Missouri Securities Division.
Oppenheimer employed David Tipton, an unregistered agent, and Paul Gershon, an unregistered investment adviser representative, both conducted business in Missouri while unregistered.
Securities agents and brokers must be registered with the Missouri Securities Division of the Office of the Secretary of State to conduct business in the state.
"Secretary Carnahan's Audit Unit within the Securities Division conducts audits on an ongoing basis. We are constantly monitoring and expanding our programs to better serve Missouri investors," said Cosgrove.
For more information regarding investments and fraud protection, visit the Secretary of State's web site at www.sos.mo.gov/securities or call the toll free investor hotline at 1-800-721-7996.