Mutual fund dealer Oppenheimer & Co. of Toronto and chairman/CEO Albert Lowenthal have been charged in the United States with "knowingly producing inaccurate data."

The charge by the National Association of Securities Dealers is the result of a probe of discount practices in the selling of mutual funds.

The association said Monday it has also fined the Toronto-based investment firm $250,000 US for late filing of reports on potential misconducts by brokers.

Oppenheimer is a holding company in Canada and does not deal directly in securities.

"The company believes that (the complaint) does not fairly reflect the operative facts and the sworn testimony already given in the matter," the association said in a release. "Furthermore, the company respectfully disagrees with the primary allegation with respect to Mr. Lowenthal."

It added: "The company and Mr. Lowenthal believe that they have strong defences for the disciplinary action brought against them and intend to vigorously defend the action."

NASD is the U.S. equivalent of the Investment Dealers Association of Canada, a self-regulatory body that oversees the securities industry.

The Investment Dealers Association said it does not oversee Oppenheimer in Canada and is not involved in the U.S. association's investigation.

NASD said its latest complaint stems from a March 2003 report, which claimed that some mutual fund investors did not receive discounts that they expected. The regulator said it also asked Oppenheimer for a self-assessment of its discount practices but never received a satisfactory response.

Specifically, the case referred to the non-payment of breakpoint discounts on front-end loaded mutual funds, a controversial issue throughout the industry.

NASD said possible penalties include fines, censure, suspension from the securities industry and disgorgement of improper gains. Oppenheimer & Co. and Lowenthal can request a hearing before the NASD's disciplinary panel.

Oppenheimer & Co. is the primary operating subsidiary of Oppenheimer Holdings Inc., an integrated financial services holdings company.

It was formerly owned by the Canadian Imperial Bank of Commerce. CIBC sold its Oppenheimer private client and asset management businesses in the United States to New York-based Fahnestock Viner Holdings Inc. in January 2003.

CIBC did not immediately comment on the allegations.

Oppenheimer (TSX:OPY.NV)rose 57 cents to $23.75 by 1:30 p.m. Monday. Shares of the company have been trending down since a peak in the $45 range in late 2003.