FINRA Fines Oppenheimer for Overcharging Its Municipal Bond Customers

The Financial Industry Regulatory Authority (FINRA) has fined brokerage firm Oppenheimer & Co., Inc. $675,000 and has ordered it to pay restitution of over $246,000 to customers who were overcharged by Oppenheimer in their municipal bond purchases.

In addition to the fine and restitution order against Oppenheimer, FINRA also fined the firm’s top municipal bond trader, David Sirriani, $100,000 and suspended him for sixty days.

As FINRA’s head of market regulation, Thomas Gira, explained: “FINRA has no tolerance for firms or individuals who charge customers excessive markups. Oppenheimer charged customers unfair prices in numerous municipal securities transactions and failed to properly supervise municipal securities transactions with its customers.”

Oppenheimer’s misconduct, which resulted in substantial damages to investors, appears to have been concentrated in the 2008 and 2009 time period.

FINRA also found that Oppenheimer failed to adequately supervise the activities of Sirriani and his municipal bond trading desk. It determined that Oppenheimer’s systems were inadequate to detect Sirriani’s misconduct.

FINRA’s press release announcing its punishment of Oppenheimer can be found here.

If you believe you have been harmed by the misconduct of your financial advisor or brokerage firm, you should contact The Galbraith Law Firm at 212.203.1249 or kevin@galbraithlawfirm.com for a free, confidential consultation.