Bloomberg News

U.S. Attorney Probing Oppenheimer Holdings on Fund Valuation

March 13, 2012

Oppenheimer Holdings Inc. (OPY) said it has received an inquiry from the U.S. Department of Justice seeking information on the valuation of a “single portfolio holding” in one of the company’s private equity funds.

Oppenheimer received a notice Feb. 24 from the U.S. Attorney’s Office for Massachusetts in Boston saying it was looking into the matter, according to a March 6 regulatory filing.

The firm has been responding to requests on the same subject from the U.S. Securities and Exchange Commission and the Attorney General of Massachusetts since October, New York-based Oppenheimer said in the filing. At issue is an allegation that the value of one of the holdings in the Oppenheimer Global Resource Private Equity Fund L.P was overstated. The probe also targeted the marketing practices associated with the fund, the company said.

Oppenheimer said in the filing that it was cooperating with investigating entities.

Christina DiIorio-Sterling, a spokeswoman for the U.S. Attorney’s office in Boston, didn’t immediately respond to an e- mail and phone message seeking comment. Brad Puffer, a spokesman for the Massachusetts Attorney General’s Office, declined to comment.

A spokesman for Oppenheimer Holdings Inc., a subsidiary of Oppenheimer & Co., a New York-based investment boutique, didn’t immediately respond to a telephone call seeking comment.

To contact the reporters on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net; Charles Stein in Boston at cstein4@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net


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