Defendant Name: Oppenheimer & Co. Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Oppenheimer Holdings, Inc
SIC Code: 6211
CUSIP: 68379710

Initial Case Details

Legal Case Name In the Matter of Oppenheimer & Co. Inc.
First Document Date 24-Feb-2009
Initial Filing Format Administrative Action
File Number 3-13378
Allegation Type Broker Dealer

Violations Alleged

Other
• Failure to supervise under Section 15(b) Exchange Act

Resolutions

First Resolution Date 24-Feb-2009

Related Documents:

34-59438 24-Feb-2009 Administrative Proceeding
Order Instituting Administrative Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
On February 24, 2009, the SEC instituted settled administrative proceedings against Oppenheimer & Co. Inc. The SEC stated: "From May 2003 to August 2004 (the "relevant period"), OPCO failed reasonably to supervise Frank Lu ("Lu"), a former salesperson at OPCO, with a view to preventing and detecting Lu's violations of the federal securities laws. During this period, Lu and Victor P. Machado ("Machado"), a former trader at two related entities, Leumi Investment Services Inc. and Bank Leumi USA, (collectively referred to as "Leumi"), engaged in a fraudulent scheme that resulted in a substantial increase of order flow from Leumi to OPCO. Pursuant to their scheme, Lu provided Machado with secret gratuities and entertainment and Machado, in violation of his duties to Leumi and its customers, directed a substantial flow of orders to OPCO for execution at prices that were favorable to OPCO and detrimental to Leumi's customers. As a result of this arrangement, on certain trades, Lu and Machado also positioned OPCO between Leumi and other broker-dealers offering better prices that Machado could have obtained for Leumi. Lu's and Machado's scheme caused significant harm to Leumi's customers."