Ex-J.P. Morgan Chase Investment Adviser Charged With Embezzlement

By Matthias Rieker 

A former J.P. Morgan Chase & Co. investment adviser in New York has been accused by federal authorities of stealing at least $20 million from clients and using the money for his own online trading and to pay his mortgage.

The adviser, Michael Oppenheim, was charged with wire fraud, embezzlement, and securities fraud, according to a Federal Bureau of Investigation complaint filed with the U.S. District Court of the Southern District of New York. He was arrested Thursday morning, according to his lawyer.

He was fired on March 18 by his employer, according to the complaint, which it identified only as a New York bank. Public records show Mr. Oppenheim worked for J.P. Morgan, which confirmed he was the person charged and that he no longer works there.

He stole amounts ranging from about $300,000 to almost $2 million from seven clients on at least 24 occasions between March 2011 and March 2015, the complaint alleged. In some instances, he told clients he would invest their money in bonds, and then faked account statements showing the bond yields, it said. In other cases, he simply moved money out of clients' accounts without their knowledge, the FBI said.

He used the clients' money for his own trading in online accounts he held outside the bank and to pay his mortgage and other bills, according to the complaint.

Mr. Oppenheim, 48 years old, started his career as financial adviser in 1998 at Merrill Lynch and joined Chase Investment Services in 2002, according to public documents. He managed about $90 million for about 500 clients, according to the complaint.

J.P. Morgan discovered the fraud and alerted the FBI, a bank spokesman said.

"We are sorry and angry this happened," he said. "We always stand by our customers and will ensure no customer who had their money stolen will lose any funds related to this."

Mr. Oppenheim couldn't be reached for comment. His lawyer, Robert Gamburg, reached on his way to the courthouse, offered no comment about the allegations.

Write to Matthias Rieker at [e-mail]

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