Meyer Wilson is currently investigating alleged misconduct by former LPL Financial broker Raymond Daniel Schmidt (CRD# 3258497). According to FINRA in a Letter of Acceptance, Waiver, and Consent, from May 2009 to November 2012, Schmidt allegedly violated various securities industry regulations by:
- Borrowing $2.25 million from seven LPL Financial customers
- Engaging in outside business activities that were neither disclosed to or approved by LPL
- Submitting five false compliance questionnaires and three false disclosure forms to LPL
Schmidt also allegedly refused to respond to FINRA’s request for information in connection with an investigation into his alleged misconduct. Schmidt has been permanently barred from working in the securities industry in any capacity as a result of his alleged misconduct.
Industry rules generally prohibit brokers from borrowing money from their customers. Among other things, engaging in improper loan arrangements with customers violates FINRA Rule 2010, which requires brokers to “observe high standards of commercial honor and just and equitable principles of trade.”
FINRA alleges that Schmidt borrowed $2.25 million from customers in order to buy real estate in Hawaii for building a vacation rental property.
FINRA also alleges that Schmidt submitted false documents to LPL in connection with his misconduct, including compliance questionnaires with inaccurate or incomplete information . .
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$350 Million for Our Clients Nationwide.
Industry rules requires brokerage firms like LPL to rigorously monitor the activities of its brokers to try to detect and prevent the very sort of misconduct that Schmidt allegedly engaged in. Was Raymond Daniel Schmidt your broker? If he was and you lost money, you may be able to recover your losses against LPL. Contact an investment fraud lawyer at Meyer Wilson for a free review of your case.
Recovering Losses Caused by Investment Misconduct.