(Bloomberg) -- Oppenheimer Holdings will pay $20 million to settle U.S. regulatory claims that it improperly sold billions of shares of penny stocks on behalf of an offshore brokerage.

Oppenheimer admitted that it failed to report red flags that its client Gibraltar Global Securities, a Bahamas-based firm, was carrying out the transactions without being registered as in the U.S., the Securities and Exchange Commission said in a statement. The company will pay $10 million to settle the SEC case and another $10 million to resolve a related case with the Treasury Department’s Financial Crimes Enforcement Network.

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