Tuesday, November 18, 2008

Oppenheimer & Co. accused of Fraud

Massachusetts' top securities regulator on Tuesday accused Oppenheimer & Co. Inc. of fraud over the investment bank's sales of auction-rate securities to customers who couldn't access their money after the market for the risky investments froze.

Secretary of State William Galvin's administrative complaint also alleges Oppenheimer executives and managers sold nearly $3 million in their own personal auction-rate securities holdings two weeks before the market collapsed last February, without warning clients of growing risks amid the downturn in the broader credit markets.

Read more at Newsweek.

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