David Wayne Krumrey, a former stockbroker registered with Oppenheimer Co. Inc. and based in The Woodlands, Texas, is facing multiple customer-initiated investment-related arbitration claims, with investors seeking significant damages. One such claim, filed on April 1, 2020, alleges that Krumrey breached fiduciary duty in equity transactions conducted in the customer’s account between January 1, 2016, and December 31, 2017, resulting in losses on oil and gas securities, including Barclays iPath SRS B S&P Short Term ETN (VXX).
According to FINRA Public Disclosure, Krumrey has been involved in five more customer-initiated disputes during his tenure at Oppenheimer, all alleging various forms of misconduct. In one instance, a claim settled on September 18, 2018, resulted in $30,000.00 in damages, with the customer accusing Krumrey of breaching contracts and acting negligently in oil and gas securities transactions, while also pointing out inadequate supervision by the securities broker dealer.
Another arbitration claim, settled on January 8, 2019, awarded the customer $240,944.42 in compensatory damages due to Oppenheimer’s liability for violating Louisiana Securities Law regarding investments in Energy XII Limited, Amarin Corp. PLCD ADR, and Barclays exchange-traded notes. The claim asserted that Krumrey breached his fiduciary duty to the customer, and Oppenheimer failed to supervise his activities.
In a separate case settled on June 5, 2019, Krumrey faced allegations of violating securities laws and making misrepresentations related to the sale of VXX, leading to $150,000.00 in damages. The claim also accused him of breaching fiduciary duty and fraudulently managing the customer’s account between 2009 and 2018.
Another customer-initiated claim, resolved for $75,000.00 in damages, pointed to unsuitable investments in VXX and other stocks held in the customer’s Oppenheimer account due to Krumrey’s actions. The claim, settled in FINRA Arbitration No. 19-01979, alleged violations of state securities laws, a breach of contract, and fiduciary obligations between 2010 and 2018.
Krumrey’s employment at Oppenheimer ended on August 31, 2017, when he was discharged for allegedly attempting to settle a customer-initiated investment-related complaint outside of the securities broker dealer’s purview.