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Florida Business, Whistleblower, & Securities Lawyers / Blog / SEC / Oppenheimer Settles With SEC For $35 Million

Oppenheimer Settles With SEC For $35 Million

OppenheimerFunds, Inc. has agreed to pay $35 million to settle charges by the Securities and Exchange Commission (“SEC”) that it made misleading statements to investors about the Oppenheimer Core Bond Fund (Symbol: OPIGX) and Oppenheimer Champion Income Fund (Symbol: OPCHX) (collectively “Funds”).

An investigation by the SEC found that OppenheimerFunds didn’t adequately disclose the use of derivatives in the Funds to add leverage. The Funds had substantial exposure to commercial mortgage-backed securities (“CMBS”) when the real estate market collapsed in 2008. As a result, the OPIGX lost 35%, while the average intermediate bond fund lost only 5%. OPCHX lost a whopping 78% of its value, more than twice what the average high-yield bond fund lost during the same period.

The Florida securities lawyers at Rabin Kammerer Johnson represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.

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