FINRA Fines Broker-Dealer for Penny Stock and Related AML Violations

FINRA has fined Oppenheimer & Co. $1.4 million for failing to have an adequate AML compliance program and for the sale of unregistered penny stock shares. According to the disciplinary action, the firm allowed unidentified customers to deposit large volumes of penny stocks in an Oppenheimer account without determining whether the shares were restricted or freely salable. The customers would then sell the shares through Oppenheimer and withdraw the proceeds. FINRA found that, between 2008 and 2010, Oppenheimer sold more than one billion shares of twenty unregistered penny stocks in the manner described. Oppenheimer is also required to hire an independent consultant to conduct a review of the adequacy of their penny stock and AML policies, systems and procedures.

See: FINRA News Release.