Former J.P. Morgan Broker Barred by FINRA Amidst Allegations of Converting $20 Million of Customer Funds

Michael Jeffrey Oppenheim of Livingston, New Jersey, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for failing to provide documents and information and an on-the-record testimony in connection with allegations that he may have converted approximately $20 million of customer funds, altered customer documents, and created false account statements. FINRA began an investigation into Michael Oppenheim’s termination from his member firm, J.P. Morgan Securities LLC (J.P. Morgan), as well as allegations that he may have converted nearly $20 million of customer funds between March 2011 and March 2015. FINRA was also investigating the alleged altering of customer documents and creation of false account statements by Mr. Oppenheim.

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JP Morgan under Investigation for Possible Breach of Fiduciary Duty in Mutual Fund Sales

JPMorgan Chase & Co (JPMorgan) is under investigation by the Securities and Exchange Commission (SEC) about a potential conflict of interest and breach of fiduciary duty with respect to its sales of mutual funds and other proprietary products. According to InvestmentNews, JPMorgan received subpoenas and inquiries from the SEC and other government authorities about the firm’s sale and recommendations of mutual funds and other proprietary investment products in its wealth management business. At question is the alleged breach of fiduciary duty, which requires that financial advisors put their customers’ best interests ahead of their own.

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SEC Cracks Down on Improper Sales of Puerto Rico Junk Bonds

The Securities and Exchange Commission (SEC) has fined 13 brokerage firms, including Charles Schwab, J.P. Morgan, Oppenheimer, TD Ameritrade, and UBS Financial, for violating a rule that is meant to protect investors from improper sales of high-risk Puerto Rican municipal bonds. The fines range from $54,000 to $130,000. The SEC sanctions are the first under the Municipal Securities Rulemaking Board (MSRB) Rule G-15(f), which establishes the minimum denomination requirement for the sales of municipal bonds. The minimum denomination amounts are the least amount of a given municipal bond that a broker dealer is permitted to sell to an investor in one transaction. The more risky the bond, the higher the minimum. This is meant to ensure that the bond investments are suited to the appropriate investor.

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