Wednesday, November 19, 2008

Massachusetts Sues Oppenheimer for Auction-Rate Sales Fraud

Massachusetts Secretary of State William Galvin filed a complaint yesterday against Oppenheimer & Co., alleging the firm sold auction-rate securities fraudulently.

Galvin wants Oppenheimer to buy back about $56 million of the securities it sold to investors in Massachusetts. He also seeks to revoke the broker-dealer registration license of Albert Lowenthal, Oppenheimer's chief executive officer, who he says sold his personal holdings of the securities two weeks before the market collapsed in February.

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