Investors Sue Oppenheimer For Breach Of Fiduciary Duty

David Wayne Krumrey of The Woodlands Texas a stockbroker employed by Oppenheimer Co. Inc. is referenced in a customer initiated investment related arbitration claim in which the customer sought unspecified damages based upon allegations that between 2010 and 2018: (1) the customer’s account was handled in a negligent manner (2) contractual obligations had been violated (3) fiduciary duties were breached (4) Barclays iPath Series B S&P 500 VIX Short-Term Futures Exchange Traded Notes (VXX) trades effected in the customer’s account were inappropriate and had been executed in violation of securities laws and (5) Oppenheimer failed to supervise Krumrey’s trading in the customer’s account. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-01979 (July 17, 2019).

FINRA Public Disclosure confirms that Krumrey has been identified in four more additional customer initiated investment related disputes pertaining to accusations of his violative conduct while employed with Oppenheimer Co. Inc. In fact, on December 21, 2017, a customer initiated investment related complaint concerning Krumrey’s conduct was resolved for $35,000.00 in damages supported by allegations that unauthorized common and preferred stock transactions were effected in the customer’s account.

Another customer initiated investment related arbitration claim concerning Krumrey’s activities was settled for $30,000.00 in damages founded on accusations of breach of contract; negligent supervision of the customer’s account; violation of fiduciary duties; and negligence in regard to the oil and gas transactions executed in the customer’s account when Krumrey was employed by Oppenheimer. FINRA Arbitration No. 17-02654 (Sept. 18, 2018).

Krumrey is also subject of a customer initiated investment related arbitration claim where the customer was awarded $240,944.42 in damages based upon Oppenheimer being found liable on the customer’s claims of the violation of Louisiana securities laws; unjust enrichment; negligent supervision; negligence; and breach of fiduciary duty relating to Energy XXI Limited, Amarin Corp. PLC ADR and exchange traded notes that had been issued by Barclays. FINRA Arbitration No. 18-00778 (Jan. 8, 2019).

An additional customer initiated investment related arbitration claim in regard to Krumrey’s conduct was resolved for $150,000.00 in damages based upon allegations of the customer’s account being negligently administered; contractual and fiduciary duties having been violated; unfounded statements being made concerning Barclays iPath Series B S&P 500 VIX Short-Term Futures Exchange Traded Notes; and the customer having been defrauded. FINRA Arbitration No. 18-02296 (June 5, 2019).

FINRA Public Disclosure additionally reveals that Krumrey has been barred from associating with any FINRA member in any capacity supported by accusations that Krumrey neglected to comply with a request that FINRA made for his information. Case No. 2017055552901 (Apr. 6, 2018). Krumrey was initially suspended by FINRA on April 6, 2018 for failing to cooperate with its request. FINRA allowed Krumrey three months from the time he was notified of the suspension to request that his suspension be lifted; however, Krumrey failed to communicate with the regulator by the deadline imposed. He was automatically barred by FINRA on April 6, 2018.

Krumrey was discharged by Oppenheimer on August 31, 2017 founded on allegations that he tried to settle a customer’s complaint while concealing it from the firm.