NASD sues Oppenheimer - Regulator claims the brokerage supplied it with inaccurate data

OTIS BILODEAU AND ERIK SCHATZKER
Bloomberg News
January 10, 2006

Oppenheimer Holdings Inc. and Albert Lowenthal, chief executive officer of the Toronto-based brokerage, were sued by NASD for allegedly giving the regulator inaccurate data during a review of mutual fund sales practices.

Lowenthal, 60, approved the submission of "flawed, inaccurate, and incomplete data" about sales discounts, NASD said in a civil complaint Monday. Oppenheimer & Co., a New York- based unit of Oppenheimer Holdings, was aware the information was flawed, yet didn't notify NASD or make corrections promptly, according to the lawsuit...

...Oppenheimer also has run afoul of the New York Stock Exchange and Treasury Department. It agreed last month to pay $4.4 million in settlements with those regulators over accusations the firm failed to do enough to police its employees and guard against money laundering. Oppenheimer didn't admit or deny wrongdoing in those cases.

NASD's suit today marks the second time in eight months that the regulator, formerly known as the National Association of Securities Dealers, has accused Oppenheimer of failing to produce documents and data. The first complaint, in May, involved an NASD investigation of reporting violations on municipal bond transactions...

Labels: money laundering