Investors Sue Oppenheimer For Negligence

David Wayne Krumrey of The Woodlands Texas a stockbroker formerly registered with Oppenheimer Co. Inc. is the subject of a customer initiated investment related arbitration claim where the customer sought $300,000.00 in damages based upon accusations including breach of fiduciary by Krumrey as it pertained to equity transactions effected in the customer’s account between January 1, 2016 and December 31, 2017. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01075 (Apr. 1, 2020). According to the claim, the stockbroker’s breach of contract and negligence caused the customer’s losses on oil and gas securities including Barclays iPath SRS B S&P Short Term ETN (VXX).

FINRA Public Disclosure reveals that Krumrey has been identified in five more customer initiated investment related disputes containing allegations of his misconduct while employed by Oppenheimer. On September 18, 2018, a customer initiated investment related arbitration claim regarding Krumrey’s conduct was settled for $30,000.00 in damages based upon allegations of breach of contract and negligence relating to oil and gas securities transactions effected by Krumrey at Oppenheimer. FINRA Arbitration No. 17-02654. The claim indicated that the customer’s energy investments were not appropriate and that the securities broker dealer improperly supervised Krumrey.

Krumrey is the subject of another customer initiated investment related arbitration claim where the customer was awarded $240,944.42 in compensatory damages founded on Oppenheimer being found liable on the customer’s claims of violation of Louisiana Securities Law relating to the customer’s investments in Energy XII Limited, Amarin Corp. PLCD ADR and Barclays exchange traded notes. FINRA Arbitration No. 18-00778 (Jan. 8, 2019). According to the Statement of Claim, a fiduciary duty that was owed to the customer had been breached and the stockbroker’s activities were not supervised by Oppenheimer.

Another customer initiated investment related arbitration claim regarding Krumrey’s activities was settled for $150,000.00 in damages supported by allegations of the violation of securities laws relating to Krumrey’s sale of VXX. FINRA Arbitration No. 18-02296 (June 5, 2019). According to the claim, misrepresentations had been made relating to the customer’s investment in VXX. The claim also alleges breach of fiduciary duty and fraudulent management of the customer’s account between 2009 and 2018.

Krumrey is the subject of another customer initiated investment related arbitration claim which was resolved for $75,000.00 in damages based upon accusations of unsuitable investments in VXX and other stocks held in the customer’s Oppenheimer account because of Krumrey. FINRA Arbitration No. 19-01979. According to the claim, state securities laws were violated. The stockbroker allegedly breached a contract and his fiduciary obligation to the customer. The claim also alleges negligent maintenance of the customer’s account between 2010 and 2018.

Krumrey was discharged by Oppenheimer on August 31, 2017 based upon allegations that he tried to settle a customer initiated investment related complaint outside of the securities broker dealer’s auspices.