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JP Morgan Adviser Jailed 5 Years for $20 Million Scheme
A former investment adviser at JP Morgan Chase & Co. has been sentenced to five years in prison and ordered to forfeit over $20 million after being found guilty of defrauding clients out of millions of dollars.
Michael Oppenheim, 49, of Livingston, New Jersey, used his position to convert at least $20 million belonging to eight clients into his own use and benefit over a seven-year period from March 2008 to March 2015.
Oppenheim lied to his clients by claiming to have invested their money in low-risk municipal bonds and sent them doctored account statements, but in reality, he used the money for personal expenses such as gambling and trading debts, as well as to pay for luxury clothing and travel.
In an effort to cover up the scheme, Oppenheim provided clients with fraudulent bank account statements and withdrew funds from one client and deposited them into the account of another without their consent.
Manhattan U.S. Attorney Preet Bharara said, “Michael Oppenheim’s clients placed not just their money but their trust in their financial adviser, only to have Oppenheim use their investments as his cash cow – to the tune of more than $20 million. Thanks to the FBI’s investigation, Oppenheim’s business of siphoning his clients’ money is over.”
Oppenheim was also sentenced to three years of supervised release and ordered to pay restitution of more than $27 million to the victims of his crime. A final restitution order will be submitted to the court by June 6, 2016.
The U.S. Securities and Exchange Commission has pending civil charges against Oppenheim in a separate action, and Mr. Bharara praised the work of the FBI and thanked the SEC and FINRA for their assistance in the case.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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