Oppenheimer & Co.—Excessive Trading, Client Fund Misappropriation Charges Against Broker

 stockbroker fraud attorneyOppenheimer & Co. Failed to Supervise Broker, Mark Hotton, Who Allegedly Overtraded and Siphoned Funds from Customers, Duped Broadway Producers

Oppenheimer failed to supervise Broker, Mark Hotton, who allegedly misappropriated $3 million and churned accounts, according to regulators. Said regulators contend that Hotton allegedly defrauded dozens of clients.

According to FINRA, the firm overlooked “red flags” indicating that Mark Hotton was wiring funds from customer accounts to businesses he owned or controlled. In addition, FINRA contends, Hotton has a long history of customer disputes and was barred from the securities industry in 2012, and allegedly stole more than $2.9 million from customers.

In addition, in what sounds like a Mel Brooks film, Hotton also duped the producers of a Broadway musical. Hotton was sentenced to 34 months in prison last October for his role in this separate fraud case where he was accused of stealing money from the producers of the show, “Rebecca The Musical.”

Oppenheimer Fined $2.5 Million and Ordered to Cough Up $1.25 Million in Restitution to 22 Customers

Oppenheimer must pay a $2.5 million fine and $1.25 million in restitution to 22 customers, FINRA has ordered. The firm, FINRA notes, has already paid more than $6 million to customers who filed damage claims in arbitration.

The firm failed to supervise Mr. Hotton in “multiple respects,” according to FINRA. First, FINRA further alleges, Oppenheimer failed to properly inspect the record of Mr. Hotton before hiring him as he already had 12 reportable events on his record, including criminal charges and seven customer complaints.

Furthermore, shortly after Mr. Hotton joined the firm, his business partners sued him for defrauding them out of several million dollars, according to FINRA. Oppenheimer investigated the business partners’ claims but mistakenly concluded the allegations predated Hotton’s arrival date at the firm, and did not put him under any additional supervision, according to the settlement.

The Peiffer Rosca Wolf Investment Rights Lawyers Often Represent Investors

The Peiffer Rosca Wolf investment rights lawyers often represent investors who lose money as a result of investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud may contact the investment rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1234 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.