Shepherd Smith Edwards and Kantas Continue to Investigate Oppenheimer PEP Losses. SSEK Margin Abuse Lawyers Represent Investors Against Broker-Dealers
Shepherd Smith Edwards and Kantas Margin Abuse Lawyers (investorlawyers.com) are still investigating losses involving the Oppenheimer Portfolio Enhancement Program (Oppenheimer PEP). This proprietary program, offered by Oppenheimer to clients, was supposed to give investors the opportunity to earn an additional 5%. They had to borrow money on margin. This involves borrowing funds from the broker-dealer to purchase more securities.
This was a high-risk proposition and the minimum investment to become involved in Oppenheimer PEP was $1.25M. Considered a hedged investment, the program bet that options on indexes would remain within a tight range. The idea was that investors were supposed to make premiums and earn returns of up to 5% a year. In reality, this kind of investment strategy could only perform well in a low-volatile, low-interest situation. Not only that, but also high-risk, illiquid, and highly speculative investments, such as Alkeon 1 and Alkeon 2, were involved.
Oppenheimer PEP has since been closed down. This hasn’t stopped investors from coming forward claiming that not only did they suffer significant losses, but also, the broker-dealer and its financial advisors misrepresented the degree of risk involved.
Why Hire the Knowledgeable SSEK Margin Abuse Lawyers?
Borrowing on margin can be very risky, even for experienced and wealthy investors. It is generally unsuitable for inexperienced investors and conservative retirees, as well anyone who has a low-risk tolerance level. Unfortunately, brokerage firms and their registered representatives have been known to promote proprietary investment programs that can involve borrowing on margin to the detriment of customers.
Margin abuse happens when a financial advisor involves a client who doesn’t fully understand what borrowing on margin entails, including the risks. Excessive use of margin and not providing the proper protections while employing this strategy are two other examples of margin abuse.
Our margin abuse lawyers understand the complex nature of these types of cases and the devastating consequences excessive use of margin can have on investors.
Margin accounts and strategies involving borrowing on margin should only be recommended to sophisticated investors. However, even experienced, wealthy investors can be subject to serious losses if this strategy goes awry.
Contact Our Oppenheimer PEP Loss Law Firm
Shepherd Smith Edwards and Kantas can help you determine whether you have grounds for pursuing damages related to your Oppenheimer Portfolio Enhancement Program losses. Over the decades, we have represented thousands of investors in over 1000 matters in arbitration, mediation, litigation, and negotiation. More than 90% of our clients have secured full or partial financial recovery.
When you hire us, you are retaining everyone at our securities firm. We have over a 100 years’ worth of combined experience in securities law and the securities industry.
Call (800) 259-9010 or contact us online.