Oppenheimer Global Resource Private Equity Fund Manager Admits to Fraud
Brian Williamson, the Managing Director of the sub-advisor to the Oppenheimer Global Resource Private Equity Fund Manager consented to the entry of an Order finding that he willfully violated Section 17(a) of the Securities Act; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Section 206(4) of the Advisers Act and Rule 206(4)-8.
Mr. Williamson was also suspending him from the practice of law before the United States Securities Exchange Commission for two years.
According to the SEC, Williamson, age 42, is a resident of Newtown, Pennsylvania and was an employee of Oppenheimer & Co. Inc., and Oppenheimer Asset Management Inc.. Williamson was also the Managing Director of the Oppenheimer Alternative Investment Management, LLC and the portfolio manager of Oppenheimer Global Resource.
Oppenheimer Global Resource Funds Overstated Performance
Oppenheimer Global Resource and the Oppenheimer Alternative Investment Management are private equity funds. Oppenheimer Global Resource began admitting limited partners in April 2008, and its target investment size was $200 million. Oppenheimer Global Resource was scheduled to close in October 2009. However, as of September 2009, it had only raised $71 million, so the closing was extended until June 30, 2010.
Accordingly, from at least September 2009 through June 2010, Oppenheimer Asset Management and Oppenheimer Global Resource solicited investors through Oppenheimer & Co. Inc.’s network of registered representatives, using a “pitch book” that they put together which among other things showed that, Oppenheimer Global Resource’s internal rate of return to be 12.4%.
However, this internal rate of return was less false because after fees and expenses were taken into account, Oppenheimer Global Resource was only really -6.3%. In addition in 2009, based upon ascribing their own value to a private investment, intentionally overstated their performance
as 38.3% when in fact, it was only 3.8%.
Private equity investors with losses in the Oppenheimer Global Resource Fund should consult with counsel to determine their legal rights.
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