December 4, 2023
ChapmanAlbin has issued an Investor Alert for the Oppenheimer Portfolio Enhancement Program (PEP). Oppenheimer & Co. allegedly asked its most valuable clients to participate in the PEP program, an opportunity to borrow on margin to generate an extra 5% on its portfolio. The minimum investment was $1.25 million and the opportunity was sold as a hedged investment. However, upon information and belief, it was not as safe as it was marketed. The program could only succeed in a low volatility, low interest rate environment.
Ultimately, Oppenheimer failed to explain that the strategy would fail if the volatility in the market picked up and investors experienced significant losses before Oppenheimer discreetly closed the program.
In a recent legal victory, ChapmanAlbin represented eleven investors affected by a Ponzi scheme (Horizon Private Equity) tied to Oppenheimer & Co., causing them to pay $36.7 million in damages. This was 6.5 times our clients’ losses.
ChapmanAlbin recently achieved another win in the Horizon case against Oppenheimer that revolved around fraudulent practices. Oppenheimer was ordered to pay $14 million in damages plus additional fees.
If you have experienced losses with Oppenheimer & Co., fill out the form below and we will be in touch with you.
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