The Frankowski Firm has filed a Financial Industry Regulatory Authority (“FINRA”) arbitration claim on behalf of two clients who claim they were the victims of fraud and neglect at the hands of Dennis Phillip Ayre and his then-employers Oppenheimer & Co., Inc. and Penguin Capital Management in the Los Angeles / Beverly Hills, California area.
According to the allegations, Ayre, as a registered agent of Oppenheimer and Penguin, engaged in fraud, unauthorized trading in overconcentrated stock positions, willful neglect, and reckless disregard for his client’s investments resulting in damages exceeding $1.95 million.
The claimants allege that Ayre made unauthorized investments which placed over 94% of the claimants’ investments in one of their accounts in a single high-risk energy company. Ayre is also alleged to have engaged in unauthorized trades in corporate bond positions which suffered tremendous losses.
Making matters worse, according to the allegations, Ayre offered the claimants a put option which would allow the clients to sell their positions back to Mr. Ayre and Penguin at a set price. Mr. Ayre is alleged to have made this communication to the claimants via his private e-mail account in violation of securities regulations. Mr. Ayre failed to honor this put option, according to the claim, and the claimants’ investments which were the subject of the put option completely collapsed, furthering the claimants’ losses.
Prior to this filing, Mr. Ayre had already racked up four other customer disputes totaling more than $8 million in damages, according to his FINRA BrokerCheck report. Mr. Ayre is now employed by Hilltop Securities of Beverly Hills, California.
The Frankowski Firm is committed to protecting and asserting the rights of investors who have been financially harmed by their adviser’s wrongdoing. If you or someone you know has lost money as the result of a misrepresented or unsuitable investment as a customer of Dennis Ayre, Oppenheimer & Co., Inc., Penguin Capital Management, and/or Hilltop Securities, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.