Broker-Dealer Negligence Attorneys

When Retirees Are Targeted By Brokers in Ponzi Scams

Oppenheimer Must Pay Almost $14M Related to A$110M Scheme Run By Former Financial Advisor John Woods

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Oppenheimer & Co. to pay five Florida retirees and two trusts nearly $14M in losses they sustained in the $110M Horizon Private Equity III Ponzi scam run by its former Atlanta broker John J. Woods. The investors in this case, mostly ex-Delta Air Lines pilots and Air Force veterans, relied on the ongoing dividends from the Fund to support themselves and were devastated to discover that their investments were, in fact, worthless. The claimants contend that Woods had guaranteed high returns while claiming that their principal would stay safe.

The FINRA arbitration panel said that Oppenheimer was grossly negligent in its alleged failure to supervise Woods or investigate red flags indicating that he was running a Ponzi scam. This latest award included nearly $7M in punitive damages. To date, Oppenheimer has been ordered to pay $53M in the alleged Horizon Private Equity III Ponzi fraud, including a $36.7M award last year.

Woods, who also founded Livingston Group Asset Management Company (Southport Capital) ran the Horizon Private Equity III Ponzi scam for over a decade. He is believed to have victimized over 400 investors in at least 20 US states. Many of them were elderly investors. In March 2023, Woods pleaded guilty to operating the scam.

What Should You Do If You Suffered Losses in Horizon Private Equity III?

If you got involved in the Horizon Private Equity III Ponzi scam and suffered significant losses, you may be able to pursue damages from Oppenheimer where John Woods was a registered representative for 13 years. Although the broker-dealer wasn’t directly involved in the scheme, if it disregarded warning signs that one of its financial advisors was bilking customers and neglected to do anything to stop the fraud, it could be held liable for your losses. Already, dozens of customers have filed broker misconduct lawsuits seeking to recoup damages.

Shepherd Smith Edwards and Kantas (investorlawyers.com) are continuing to investigate the allegations of losses related to the Horizon Private Equity III Ponzi scam. Our seasoned senior investment fraud attorneys represent retirees and older investors in pursuing damages against brokerage firms whose negligence contributed to their financial losses.

When Seniors Are Targeted by Ponzi Scammers 

Because of their savings and investments accumulated over a lifetime of hard work, seniors are often a favorite target of fraudsters, including those running Ponzi scams in which money from newer investors is used to pay “returns” to earlier investors until the entire scheme collapses. For any investor to suffer serious investment losses can be devastating. However, when the victim is an older retiree, the consequences can be even more heartbreaking, which is why you want skilled elderly investment fraud attorneys representing you from the start.

Recovering financial losses in any kind of fraud can be difficult, especially if the scammer is an unregistered or unlicensed seller. However, if your broker-dealer inadvertently involved you in a Ponzi scam, through negligence or the misconduct of one of its financial advisors, you may be able to pursue and recover damages from the firm.

How Can Our Broker-Dealer Negligence Attorneys Help?

At Shepherd Smith and Edwards, we have represented thousands of investors, including many older retirees, against US broker-dealers, including the largest Wall Street firms. We have the resources, skills, and experience to handle even the most complex cases. Over the years, we have collectively recovered many millions of dollars for our clients. More than 90% of investors we have represented have obtained full or partial financial recovery with our help.

Call (800) 259-9010 today to schedule your free, no-obligation case consultation. We can help you determine whether your investment losses warrant grounds for a broker fraud lawsuit. Should we agree to move forward together, you will have our entire team of trusted Ponzi fraud attorneys, legal assistants, and consultants fighting for you.