Investors Face potential losses based on the actions of securities broker David Wayne Krumrey (CRD#: 4121845, The Woodlands, Texas). Krumrey, who was associated with Oppenheimer from 2009 to 2017, has been involved in at least 6 investor disputes, leading to serious repercussions. FINRA (Financial Industry Regulatory Authority) has barred Krumrey from practicing as a securities broker, raising concerns about potential breaches of fiduciary duty and investor damages. Here are the key details:

Lawsuit Alleging Negligence and Breach of Fiduciary Duty: In April 2020, Oppenheimer clients initiated a FINRA Arbitration Claim against David Krumrey, asserting that he failed to fulfill his fiduciary duty, neglecting their best interests. The allegations suggest that Krumrey or Oppenheimer negligently advised the clients to invest in stocks and oil and gas securities between 2016 and 2017, including VXX (Barclays iPath Series B SP500 VIX Short-Term Futures ETN). The clients further claimed that Krumrey mismanaged their account, resulting in a demand for $300,000 in compensation.

Lawsuit Related to Bad VXX Trades: In July 2019, another client of Oppenheimer filed a lawsuit concerning David Krumrey’s sales practices. The client accused Krumrey of executing unsuitable VXX trades and breaching his fiduciary duty by prioritizing his own interests in the VXX transactions. The lawsuit also alleged violations of securities laws and negligent supervision by Oppenheimer, leading to a $75,000 settlement for the client.

Misrepresentation Allegations in a Dispute: A third client of Oppenheimer contested David Krumrey’s trading practices from 2009 to 2018. In a June 2018 FINRA Arbitration Claim, the client accused Krumrey or Oppenheimer of violating securities laws by negligently misrepresenting information about VXX. The client claimed reliance on false information when investing in VXX, further alleging breach of contract and breach of fiduciary duty. Ultimately, the client received $150,000 in a settlement.

Oppenheimer Ordered to Compensate Client: In February 2018, a fourth client of Oppenheimer filed a FINRA Arbitration Claim against David Krumrey, accusing the securities firm of violating Louisiana securities law and negligent supervision. The client sustained losses on Amarin Corp. PLC ADR, Barclays ETNs, and Energy XXI Limited, with the Panel ruling in favor of the client, ordering Oppenheimer to pay $240,944.42 in compensatory damages.

FINRA Bars David Krumrey: In 2018, FINRA imposed a bar on David Krumrey, effectively prohibiting him from serving as a securities broker for any FINRA-member firm. The reasons behind the bar may be related to FINRA’s inquiry into Krumrey’s trading activities or the basis for Oppenheimer’s disaffiliation with him. Krumrey did not respond to FINRA’s information request, leading to the enforcement of the bar on April 6, 2018.

These incidents highlight the importance of investor protection and the need for vigilance when selecting a securities broker. Investors should thoroughly research and review the background and track record of their brokers to avoid potential losses and disputes.