Jeffrey Werdesheim Involved in 6-Figure Dispute
Jeffrey Werdesheim (CRD# 1892046), a broker registered with Oppenheimer & Company, made unsuitable investment recommendations, according to an investor dispute. MDF Law is investigating the Los Angeles, California-based financial professional for similar conduct. If you have concerns about investments in your accounts, call us to receive a free consultation with an attorney.
To learn more information about the dispute involving Mr. Werdesheim, continue reading. This post is based on an October 14, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Pending Dispute Alleges Suitability Violations
On September 3, 2024, an investor filed a dispute involving Mr. Werdesheim. The claim details allegations of unsuitable recommendations, negligence, breach of contract, breach of fiduciary duty, and negligent supervision. As a disclosure on his BrokerCheck record notes, the allegations relate to investments in municipal bond, money market fund, and mutual fund investments. The dispute, which is still pending, seeks $940,941 in damages.
Jeffrey Werdesheim Denies Allegations
Mr. Werdesheim issued a statement denying the allegations in the above-described investor dispute, according to his BrokerCheck record. In the statement, he asserts that the customer alleges that he “should have made more profit” in a conservative strategy that the customer selected. “I deny the allegations,” he adds, “and will vigorously defend myself.”
Firms Denied Past Disputes
Between 2002 and 2014, five other parties of investors lodged disputes involving Mr. Werdesheim. These disputes included allegations of misrepresentations and omissions, unsuitable recommendations, failure to follow instructions, and failure to diversify. His current or former member firms denied the claims.
Understanding FINRA’s Investor Protections
FINRA is a private organization made up of member broker-dealer firms. As a self-regulatory organization, FINRA maintains rules and standards that brokers and firms must follow. These rules forbid various forms of broker fraud, including the misconduct alleged in the disputes involving Mr. Werdesheim. Misrepresentation, for example, is forbidden by FINRA Rule 2020. Under this rule, brokers may not “effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.”
This rule is related to to FINRA’s suitability standard. As outlined by FINRA Rule 2111, this rule requires brokers to recommend investments that are tailored to a customer’s individual profile. When a broker misrepresents material facts—that is, facts that might pose a significant confirmation to an investor weighing an investment—they expose their client to the risk of making unsuitable investments. More information about these standards is available at FINRA’s website.
FINRA: Broker Based in Westlake Village, California
Jeffrey Werdesheim started his career as a broker when he joined Lehman Brothers’ New York City office in 1998. He remained at the firm until 2002, when he departed for CIBC World Markets. The following year, he registered with Oppenheimer & Company’s office in Westlake Village, California, where he remains today. With 35 years of experience as a broker, he has completed four industry exams, including the Series 63 and the Series 7.
Investment Losses? Call MDF Law to Speak with an Attorney
If you lost money investing with Jeffrey Werdesheim, you may have recovery options. The investment fraud attorneys at MDF Law have proven experience navigating investors through the FINRA arbitration process. We accept cases on a contingency basis, meaning we only collect a fee when our clients recover their losses. Call 800-767-8040 for a free consultation with our team today.