Former Oppenheimer Employees Settle Unregistered Penny Stock Sale Charges

On July 23^rd, the SEC announced a settlement had been reached with Scott A. Eisler, Arthur W. Lewis, and Robert Okin, three former employees of Oppenheimer & Co. Inc. charged with broker fraud for selling billions of unregistered penny stock shares on behalf of a customer. According to the charges, Eisler executed the distribution of billions of illegal and unregistered penny stock shares with Lewis, his supervisor, both participating in and approving the sales. Okin, Lewis’s supervisor, was charged as well for failure to notice red flags that would have indicated those he was in charge of supervising were in direct and open violation of federal securities law.

All three of the former employees have been barred from working in the securities industry for at least 12 months. The combined fines agreed upon in the settlement add up to $225,000 and are in addition to the $20 million Oppenheimer was required to pay to the SEC and the Treasury Department’s Financial Crimes Enforcement Network for unrelated penny stock violations in January of this year.

Broker fraud is an ongoing issue costing investors millions of dollars every year. If you suspect you have been the victim of this or any other type of stock fraud, please contact Colling Gilbert Wright online or by calling (407) 712-7300 to schedule a free consultation today.