Oppenheimer To Pay SEC $35M Over Misleading Statements

Law360, New York (June 6, 2012, 2:01 PM EDT) -- OppenheimerFunds Inc. reached a $35 million settlement on Wednesday with the U.S. Securities and Exchange Commission over claims that it made misleading statements about two of its mutual funds that were struggling during the financial crisis in late 2008.

The SEC had alleged the investment management company and its sales and distribution arm, OppenheimerFunds Distributor Inc., used derivative instruments called total return swaps to add exposure to commercial mortgage-backed securities in a high-yield bond fund called the Oppenheimer Champion Income Fund and an intermediate-term, investment-grade fund...
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