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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • SEC Fines OppenheimerFunds $35M For Misleading Investors 0 comments
    Jun 11, 2012 3:51 PM

    The Securities & Exchange Commission found that during the financial crisis, OppenheimerFunds did not adequately disclose the use of derivatives in two funds to investors:

    • Oppenheimer Core Bond Fund- OPIGX
    • Oppenheimer Chamption Income Fund -OPCHX

    The Core Bond Fund lost 36% and the Champion Income Fund lost 72% of its value. According to SEC Enforcement Officer Robert Khuzami, "Mutual funds have an obligation to clearly and accurately convey the strategies and risks of the products they sell. Candor, not wishful thinking, should drive communications with investors, particularly during times of market stress."

    The derivatives added leverage supposedly to add substantial exposure to commercial mortgage backed securities in the funds, however, according to the SEC it backfired in 2008 when the market collapsed.

    If you have unexplained losses in your brokerage account, we may be able to help you recover those losses from the broker dealer who sold you the investments. Brokers have a duty to make suitable recommendations and to disclose the risks and rewards of every deal they sell. Call us at 561 391 1900 for a free consultation.

    Nationwide representation

    Rex Securities Law

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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