Massachusetts Secretary of the Commonwealth William F. Galvin has filed civil charges accusing Oakdale Wealth Management financial advisors Michael O’Keefe and James Daly of using over $11M of client assets to make risky bets on oil and gas investments. The state regulator accused them of employing a “one-size-fits-all” approach when managing investors’ money. Oakdale Wealth Management is a registered investment advisor (RIA) that the two men founded in 2006.
According to Galvin’s complaint, Daly and O’Keefe gambled away clients’ money in the oil and gas market. The two investment advisors are accused of spending more than $11M of investors’ funds to make 2000 energy-related investment purchases, including Master Limited Partnerships (MLPs). Their victims included a number of senior citizens who were saving money to retire, blue-collar workers, a charitable organization, and a widow.
The Massachusetts regulator contends that even though the risk tolerance levels, investment goals, and financial situations of Oakdale’s clients varied, the two financial advisers made the decision to place almost all of them in high-risk, publicly traded investments related to energy, including oil and gas investments. This, even as the firm’s written policies and procedures articulated that investment decisions would be specifically tailored according to each client’s goals and the degree of risk they could handle.