Oppenheimer units to pay $2.8 mln to settle US SEC civil charges
WASHINGTON, March 11
WASHINGTON, March 11 (Reuters) - Two investment units at Oppenheimer & Co will pay more than $2.8 million to settle charges that they misled investors about the performance and policies of a private equity fund they manage, the U.S. Securities and Exchange Commission said on Monday.
The agency said Oppenheimer Asset Management and Oppenheimer Alternative Investment Management sent out misleading quarterly reports and marketing material that claimed the fund's holdings were valued "based on the underlying managers' estimated values." The SEC alleged the portfolio manager valued the fund's biggest investment at a significant markup from the underlying managers' estimated value.
Oppenheimer settled the matter with the SEC without admitting or denying the allegations. The SEC said the office of the Massachusetts attorney general filed a related action on Monday and levied an additional penalty of $132,421.