Financial Advisor Moshtael’s Excessive Commissions at Oppenheimer Spark Outrage

In the maze of financial services, trust should never come with an excessive price tag. Yet, for clients of Randy Moshtael (CRD# 1036474), a broker with Oppenheimer & Company, allegations suggest this may have been precisely the case. Recent disputes have centered around excessive commissions, raising red flags for investors and industry watchdogs alike.

As Warren Buffett famously noted, “The financial world is a melting pot of real danger and irrational hope.” For investors navigating this landscape, understanding when they’re being overcharged is essential to protecting their financial future. According to a study by the Securities and Exchange Commission, investment fraud and bad advice from financial advisors cost investors billions of dollars each year.

The case against excessive commissions: what happened?

On October 15, 2024, an investor filed a complaint alleging that Moshtael failed to properly handle their account and charged excessive commissions. This wasn’t merely a minor discrepancy—the severity of the situation prompted Oppenheimer & Company to settle the dispute for a substantial $140,000 in January 2025.

In his broker statement, Moshtael claimed the customer had requested a commission discount that was agreed upon but not implemented. “When the customer complaint was received, the firm agreed and offered the client an appropriate adjustment, which the client rejected,” he stated. Eventually, the settlement included “the original agreed-upon commission adjustment, plus a small amount for legal fees.”

This wasn’t an isolated incident. In 2015, another investor alleged Moshtael “made excessive, unauthorized, and unsuitable futures trades” in their account. That complaint reached a $97,500 settlement in 2016, establishing a pattern that should concern current and former clients.

Consider this alarming fact: Studies show that high-commission investment products typically underperform their lower-cost alternatives by approximately the amount of the additional fees charged—a direct transfer of wealth from investors to advisors. If you believe you have been a victim of excessive commissions or investment fraud, consider reaching out to an experienced securities arbitration law firm like Haselkorn and Thibaut at 1-888-784-3315 for a free consultation.

The man behind the allegations: who is Randy Moshtael?

With 41 years in the industry, Randy Moshtael appears to have built a substantial career. He began as a broker in 1982 with E.F. Hutton & Company and moved through several firms including Shearson Pacific and Salomon Smith Barney before joining Oppenheimer & Company in 2003, where he continues to work from their Los Angeles office.

Moshtael’s professional biography on Oppenheimer’s website describes his approach: “I use an in-depth discovery process that leads to a true understanding of each client’s specific situation, time horizon, and risk tolerance. I focus on growing and protecting the assets of high net worth clients (individuals, families, corporate executives, and businesses).”

However, his record isn’t unblemished. In 2002, Smith Barney permitted his resignation following allegations that he gave money to a client. Moshtael explained this client was “a friend of more than 20 years” and that when he “wrote the check I had completely forgotten he was a client, since I had written checks to him in 1997 and 1998 as well.”

With six completed industry exams, including the Series 3 and Series 7, Moshtael possesses the credentials expected of an experienced financial advisor. Yet credentials alone don’t guarantee ethical practice.

Breaking down FINRA rules: what investors should know

Financial Industry Regulatory Authority (FINRA) rules are clear when it comes to excessive commissions. Under FINRA Rule 2121, brokers must charge fair and reasonable commissions, markups, and fees in all transactions. Factors determining “reasonableness” include:

• The type of security involved
• The availability of the security in the market
• The price of the security
• The amount of money involved in the transaction
• The pattern of the broker’s compensation

When charges exceed what’s reasonable given these factors, brokers may be in violation of their obligations. Think of it this way: financial advisors are like guides in a complex wilderness. They’re entitled to payment for their expertise, but not to charge exorbitant fees that deplete your resources along the journey.

Additionally, FINRA Rule 2111 requires that recommendations be “suitable” for clients, considering their investment profile, financial situation, and needs. Excessive trading that generates commissions (often called “churning”) violates this fundamental obligation.

Lessons from the case: protecting your financial future

The allegations against Moshtael highlight crucial lessons for all investors:

1. Verify commission structures upfront. Don’t assume charges are standard across the industry. Ask specifically about commission rates and how they compare to industry averages.

2. Review your statements regularly. Commission charges should be clearly visible. If they seem high or inconsistent with your expectations, question them immediately.

3. Understand the difference between fee-based and commission-based advisors. Commission-based advisors earn money when you buy or sell securities, potentially creating conflicts of interest.

4. Check your advisor’s record through FINRA BrokerCheck. Previous complaints can signal potential issues with how an advisor conducts business.

The financial consequences of excessive commissions extend beyond the immediate charges. Over time, these fees compound, significantly eroding investment returns. A difference of just 1% in annual fees can reduce a portfolio’s value by hundreds of thousands of dollars over a lifetime of investing.

If you believe you’ve been subjected to excessive commissions or unsuitable investment recommendations, you have options. FINRA arbitration provides a forum for investors to seek damages without the cost and complexity of traditional litigation. Many attorneys who specialize in securities law work on a contingency basis, meaning they only collect fees if you recover losses.

In finance, as in life, relationships should be built on trust, transparency, and fairness. When those principles are compromised, it’s not just money at stake—it’s the integrity of the entire financial system.