The Financial Industry Regulatory Authority said Oppenheimer & Co. agreed to pay $4.5 million to settle allegations of marketing timing.
Oppenheimer & Co. failed to prevent improper, short-term trading of mutual funds by five traders on behalf of hedge fund clients in 2003, the regulator said last week.
Though it did not admit wrongdoing, the investment manager agreed to pay a $250,000 fine and $4.25 million of restitution to more than 60 mutual fund firms, said the regulator, which oversees more than 5,000 brokerage companies.
The traders, who did not cooperate with the investigation, have been barred from the securities industry. One has filed an appeal with the Securities and Exchange Commission
The trades generated $9 million of gross revenue for Oppenheimer & Co., according to the regulator.
