A former JP Morgan broker has been ordered to spend five years in prison for defrauding several clients of millions of dollars over a seven-year period, the U.S. Department of Justice announced on Tuesday.
The New Jersey-based ex-broker, Michael Oppenheim, 49, was sentenced to five years in jail, three years of supervised release, and ordered to forfeit more than US$20 million after he was convicted of stealing millions of dollars from several clients between 2008 and 2015.
Oppenheim pled guilty to one count of embezzlement and one count of securities fraud back in November 2015. In addition to the sanctions imposed by the court, as part of his plea agreement, he also agreed to pay restitution of more than US$27 million to his victims. A final restitution order will be submitted to the court by June 6.
According to U.S. authorities, Oppenheim used his position as an investment advisor at JP Morgan Chase & Co. to defraud multiple clients by claiming to have invested their money in securities and sending them falsified account statements purportedly reflecting those investments. In fact, he diverted the clients’ money for his own benefit, or used it to pay back other clients.
“Michael Oppenheim’s clients placed not just their money but their trust in their financial advisor, only to have Oppenheim use their investments as his cash cow – to the tune of more than $20 million,” says Preet Bharara, U.S. attorney for the Southern District of New York, in a statement regarding the sentencing. “Thanks to the FBI’s investigation, Oppenheim’s business of siphoning his clients’ money is over.”
The U.S. Securities and Exchange Commission (SEC) also has pending civil charges against Oppenheim in a separate action.