NASD Fines Oppenheimer $800K for Report Failure
October 16, 2006
The NASD fined Oppenheimer & Co. $800,000 for failing to timely and accurately report 6,100 municipal securities transactions between January 2003 and May 2004, as well as not responding to the regulator's request for information in September 2004. Oppenheimer also failed to retain business-related internal e-mail sent by 20 employees who traded the municipal securities, the NASD said.
In addition to the fine, the NASD is requesting Oppenheimer to retain outside counsel to review its supervisory policies regarding reporting municipal securities transactions.
In settling with the NASD, Oppenheimer neither admitted nor denied the charges. However, the company said the errors occurred due to "rapid expansion of the firm," noting that between September 2001 and June 2003, the firm acquired four companies, preventing it from setting up "all of the processes and procedures for the management of its larger business."
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