Michael Oppenheim, an ex JP Morgan broker, was sentenced to five years after stealing over $20 million of his client's money. At one point, Oppenheim was a successful broker managing 500 clients with combined assets of $90 million. Oppenheim is now claiming, according to an Investment News article, that his brain was 'hijacked' by a sports gambling addiction. The U.S. District judge presiding over the case gave him five years, instead of the ten years the prosecutors requested. Oppenheim pleaded guilty in November 2015.
Michael Oppenheim, a former JP Morgan advisor, has been charged by federal authorities for allegedly stealing $20 million from client accounts. On over twenty occasions, Oppenheim withdrew money, anywhere from $300,000 to $2 million at a time, from clients accounts and deposited the monies into his own personal account. Oppenheim was able to carry out the fraud by providing customers with false account statements which made it appear their monies were invested in bonds. JP Morgan has pledged to reimburse victimized clients.
After wrongfully converting funds and failing to cooperate with the Financial Industry Regulatory Authorities' (FINRA's) investigation, two former JP Morgan Chase brokers were barred from the securities industry. Fernando Arevalo and Jimmy Caballero allegedly stole $300,000 from an elderly client. According to FINRA, the two did this by first selling two of her annuities and transferring that money into a new account that Arevalo had opened for her. From there they transferred the funds once again to an account with both the client's and Caballero's name on it. After that, they were able to withdraw money for their own personal expenses. The client was not aware of any of the transactions nor did she approve them. Both men also were accused of failing to cooperate with FINRA's investigation after failing to testify and provide relevant information. Although JP Morgan was not a part of the suit, they did refund the elderly woman all of her money back.