Failure to Supervise Attorneys

Shepherd Smith Edwards and Kantas Continue to Investigate Oppenheimer Over Horizon Private Equity III Losses

Broker-Dealer Allegedly Neglected To Stop Multimillion-Dollar Ponzi Scam By Former Financial Advisor

For the past two years, Shepherd Smith Edwards and Kantas (investorlawyers.com) have been investigating claims of losses by investors who were defrauded in the alleged $120M Horizon Private Equity III Ponzi scam. While Oppenheimer does not appear to have been directly involved in the fraud, run by its ex-broker John Woods in Georgia, there appear to be grounds for suing the broker-dealer for its purported gross negligence and failure to properly supervise this financial advisor.

Already, more than two dozen investor loss lawsuits have been filed, including two resulting in FINRA arbitration panels awarding investors $36.7M and $14M, respectively. Another recent FINRA lawsuit, which was filed by 30 North Carolina residents, accused Oppenheimer of hiding Woods’ purported broker misconduct from customers.

In March 2023, Woods, who is the former manager of Horizon Private Equity III and President of Southport Capital, pleaded guilty to defrauding investors of over $25M. According to prosecutors, the ex-Oppenheimer broker and other investment advisers he instructed promised low-risk and “profitable returns” while using newer investors’ funds to pay earlier investors. The US Securities and Exchange Commission (SEC) shuttered the scam in 2021. By then, hundreds of Horizon investors in 20 US states were owed over $110M.

Woods is not the only investment adviser accused of selling Horizon Private Equity III to investors. Here are several others: 

• Michael Jeremiah Mooney
• James Wallace Woods
• Julie Adelle Jones
• Penny Gail Flippen
• Arthur Theodore Brown
• Britt Franklin Wright
• Iris Cecelia Israel

How Can Our Savvy Investment Fraud Attorneys Help?

For over 30 years, Shepherd Smith Edwards, and Kantas have been going after broker-dealers whose negligence and failure to supervise their registered representatives did not protect investors from unnecessary losses, broker misconduct, negligence, and theft. Brokerage firms have a duty to have the proper systems and procedures in place to detect red flags and stop investment scams from happening under their watch.

When you go up against a brokerage firm as big as Oppenheimer, you want to work with seasoned investment loss attorneys who have the skills, resources, and experience to pursue your financial recovery. Our securities law firm has dedicated our practice exclusively to representing investors like you in receiving the damages you are owed.

This is not the kind of legal claim you want to make without savvy Ponzi fraud attorneys representing you. As a matter of fact, filing your own FINRA lawsuit against the brokerage firm can maximize your chances for a full financial recovery. It also lets the firm know that you mean business and that they must take your legal case seriously.

Failure To Supervise Leads To Many Investors’ Losses 

Not only is a broker-dealer’s failure to supervise a violation of FINRA Rule 3010, but it one of the most common reasons that lead to investor losses. Many broker fraud lawsuits will cite this claim for why other types of financial advisor misconduct, including misappropriation, unsuitability, concentration, churning, unauthorized trading, and much more, were able to happen. Investors are the ones who end up paying the price.

If You Were A Horizon Private Equity III Investor, Contact Us our Team of Failure to Supervise Attorneys Today

We know how devastating it can be to suffer investment losses and all the more so when fraud is involved. To schedule your free, no-obligation case consultation with one of our trusted failure to supervise attorneys, call (800) 259-9010 or contact us online.