Oppenheimer Faces Class Action Suit Over Ponzi Scheme – Horizon Private Equity

Posted on September 13th, 2021 at 12:20 PM
Oppenheimer Faces Class Action Suit Over Ponzi Scheme – Horizon Private Equity

From the Desk of Jim Eccleston at Eccleston Law:

Oppenheimer & Co. (Oppenheimer) is facing a proposed class-action suit alleging that a $110 million Ponzi scheme was conducted by one of the investment banking company’s advisors. Further, the suit alleges that Oppenheimer allowed the advisor to resign without notifying federal regulators. Named plaintiff for the class action suit, Dawson Blvd LLC, claims that it was a victim of a Ponzi scheme purported by an advisor in Oppenheimer’s Atlanta office. The LLC claims that it invested in a fund, Horizon Private Equity III LLC, which was routinely marketed to Oppenheimer clients by advisor John Woods. 

The class action suit comes one month after the Securities and Exchange Commission (SEC) filed a complaint against Woods, which alleged a decade-long scheme that defrauded nearly 400 clients. Woods “made no effort” to hide Horizon Private from Oppenheimer’s management, according to the suit. The suit further alleges that Woods utilized office space to conduct the scheme next door to Oppenheimer’s office. Oppenheimer was fully aware of Woods’ scheme by December 2016; however, Oppenheimer allegedly concealed the scheme from federal regulators and enabled Woods to peacefully resign, according to the suit. 

Eccleston Law LLC is investigating this matter. Those with questions or information should contact us.  

 

Tags: eccleston, eccleston law, ponzi scheme, lawsuit, oppenheimer

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

March 11, 2025
Former CNBC Analyst Pleads Guilty to $2.7 Million Securities Fraud Scheme

James Arthur McDonald Jr., a former financial advisor and frequent CNBC guest analyst, has agreed to plead guilty to securities fraud, admitting to defrauding investors out of at least $2.7 million, as reported by ThinkAdvisor. The felony charge carries a maximum sentence of 20 years in federal prison.

March 10, 2025
Wells Fargo and Merrill Lynch Settle SEC Charges Over Cash Sweep Program Policies

The Securities and Exchange Commission (SEC) has announced settlements with Wells Fargo Clearing Services LLC, Wells Fargo Advisors Financial Network LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated over allegations that they failed to implement proper policies and procedures for their cash sweep programs.

March 7, 2025
FINRA Orders $8.2 Million in Restitution for Mutual Fund Customers

FINRA has directed Edward Jones, Osaic Wealth, Inc., and Cambridge Investment Research, Inc. to pay more than $8.2 million in restitution to customers harmed by failures to provide mutual fund sales charge waivers and fee rebates.