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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.