Jerry Willoughby, et al. v. Oppenheimer & Co., Inc., FINRA Case #21-03115

Broker-dealer found grossly negligent for employees’ Ponzi scheme operated out of its offices.

A group of investors alleged causes of action, including breach of fiduciary duty and respondeat superior, against the broker-dealer for its failure to supervise four of its employees who operated a Ponzi scheme out of the broker-dealer’s office in Atlanta, Georgia. The panel found the respondent grossly negligent and awarded the claimants approximately $14 million in damages, including $6.9 million in punitive damages. The claimants also successfully petitioned a court of competent jurisdiction for attorney fees and costs.



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