Did Your Oppenheimer Broker Recommend The Firm’s Portfolio Enhancement Program? Our Savvy Oppenheimer PEP Margin Abuse Attorneys Are Investigating Investor Losses
If you suffered investment losses in the Oppenheimer Portfolio Enhancement Program (PEP), Shepherd Smith Edwards and Kantas (investorlawyers.com) want to talk to you. The proprietary program allegedly offered investors a chance to make an extra 5% if they would borrow money on margin to take part in the Oppenheimer PEP. This purportedly has included investing in private equity investments Alkeon 1 and Alkeon 2, both of which are illiquid and speculative.
Touted as a hedged investment, the minimum investment allowed was $1.25M. Oppenheimer PEP bet that options on indexes would stay within a tight range, which was supposed to let investors receive premiums and garner returns of up to 5% annually.
However, this was a high-risk proposition that could only do well in a low-interest, low-volatile scenario. Like the UBS Yield Enhancement Strategy (YES) or the Options Advantage Fund by Sanford Bernstein, the Oppenheimer PEP’s strategy did poorly. The brokerage firm has since shuttered the program—but not before investors sustained significant portfolio losses. Not only that but also many of them are saying they were never fully apprised of the level of risk they were taking on.
Client of Oppenheimer Broker E Matthew Steinberg Files $2.5M PEP Loss Lawsuit
Already, at least one investor has filed an Oppenheimer PEP arbitration case. The claimant, who is a retiree, contends that he sought a way to safely make money for retirement. Instead, the broker-dealer and its financial advisory allegedly unsuitably recommended the hedged proprietary options program and a long-term bond portfolio that ended up sustaining multiple defaults. The investor also allegedly sold Alkeon 1 and Alkeon 2 on margin by Steinberg.
If Oppenheimer Broker E. Matthew Steinberg, who is based in Pennsylvania, or any other Oppenheimer financial advisor marketed and sold you the hedged Oppenheimer PEP, please contact our savvy margin abuse law firm to request your free, obligation case consultation.
Borrowing on margin can be very risky even for wealthy investors. It is an investing strategy that is definitely unsuitable for conservative retirees with low-risk tolerance levels, unsophisticated investors, and retail investors. Over the years, Shepherd Smith Edwards and Kantas has represented many investors who have suffered losses due to the bad recommendations of their brokers, especially when the latter and their financial firm have so much to gain by recommending a proprietary investment program that benefits them financially.
Why Work With Our Savvy Oppenheimer PEP Attorneys?
This is not the first time we have investigated Oppenheimer over allegations of broker misconduct or negligence. As a matter of fact, we are currently investigating the broker-dealer after one of its former financial advisors John Woods managed to run the $100M Horizon Private Equity III Ponzi scam while under its supervision.
The attorneys at our securities firm have over a combined 100 years’ worth of experience in the securities industry and securities law. Over the years, we have gone up against the largest firms on Wall Street to secure significant settlements and awards for investors.
Call (800) 259-9010 today or contact us online.