WASHINGTON, March 11 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.