National investment loss lawyers KlaymanToskes is investigating Oppenheimer & Co. and financial advisors who recommended Oppenheimer’s Portfolio Enhancement Program (“PEP”). This proprietary program allegedly allowed investors a chance to make an extra 5% if they would borrow money on margin to take part in the Oppenheimer PEP. However, the strategy involved margin abuse and high-risk investments, including private equity investments in Alkeon 1 and Alkeon 2, both of which are illiquid and highly speculative.
If your financial advisor recommended unsuitable investments in Oppenheimer’s PEP based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
Contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Oppenheimer’s PEP is an investment advisory program offered by Oppenheimer & Co. Inc., designed to provide managed investment portfolios tailored to investors’ individual objectives, risk tolerance, and time horizons.
Full Name:
Portfolio Enhancement Program
Provider:
Oppenheimer & Co. Inc.
Program Type:
Managed Investment Advisory
Features:
Customized Portfolios, Professional Management, Diversification, Ongoing Monitoring
Allegations:
Suitability concerns, high fees, unexpected portfolio losses
KlaymanToskes’ investigation has led the firm to believe that Oppenheimer’s Portfolio Enhancement Program (PEP) was a high-risk investment that could only succeed in a low-interest, low-volatility environment.
Unfortunately, similar to the UBS Yield Enhancement Strategy (YES), Merrill Lynch’s Harvest Volatility Management Program, and the Options Advantage Fund by Sanford Bernstein, Oppenheimer’s PEP strategy performed poorly under less favorable conditions. Oppenheimer has since shut down the program, but not before investors sustained significant portfolio losses.
The Oppenheimer Portfolio Enhancement Program was touted as a hedged investment opportunity. Investors were required to make a minimum investment of $1.25 million. The program’s strategy hinged on the performance of options on indexes, betting that these indexes would stay within a tight range. This approach was supposed to allow investors to receive premiums and garner returns of up to 5% annually.
Investors are now claiming that they were never fully apprised of the level of risk associated with the Oppenheimer PEP. The high-risk nature of the investments and the reliance on a specific market condition were not adequately communicated, leaving investors vulnerable to substantial losses.
If you suffered losses in Oppenheimer’s Portfolio Enhancement Program (PEP), or any other investments at Oppenheimer & Co. due to unsuitable recommendations by your financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
At least one investor has filed an Oppenheimer PEP arbitration case in order to recover investment losses. The customer, a retiree, contends that he sought a safe way to create income for retirement, and instead was allegedly misled by Oppenheimer and its financial advisor, Matthew Steinberg (CRD# 2430032), into investing in the high-risk proprietary options program and a long-term bond portfolio that sustained multiple defaults. The investor also alleges that Alkeon 1 and Alkeon 2 were sold on margin by Oppenheimer and its broker, leading to further losses.
Borrowing on margin is fraught with risk, even for affluent investors. This strategy is particularly ill-suited for conservative retirees with low-risk tolerance, as well as for unsophisticated and retail investors. KlaymanToskes has represented many clients who have experienced significant losses due to unsuitable recommendations from their brokers. Often, these brokers and their firms stand to benefit financially from pushing proprietary investment programs, prioritizing their own gains over the well-being of their clients.
Financial advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers. Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector.
If you suffered losses in Oppenheimer’s Portfolio Enhancement Program (PEP) or any other Oppenheimer & Co. investments due to unsuitable recommendations by your financial advisor, you may be entitled to a financial recovery.
Contact KlaymanToskes at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we achieve a financial recovery for you.