Based on FINRA’s BrokerCheck report on Schmidt, a complaint was filed on October 9, 2007 alleging that Schmidt caused an investor client upwards of $500,000 worth of damages due to failing to provide due diligence and theft during his employment at Stifel Nicolaus & Company, Inc. and Wells Fargo Advisors Financial Network LLC. The claim was settled for damages of $80,000 in which Schmidt was required to pay $32,500, Wells Fargo was required to pay $32,500, and Stifel, Nicolaus & Company, Inc. was required to pay $15,000. Additionally, a second claim was filed on 12/04/2017 that is still pending regarding an allegation of theft of client funds. As a result of the second claim, Schmidt was given a permanent suspension from the securities industry.
Schmidt was previously employed at Stifel, Nicolaus & Company, Inc. from 2002 to 2006 and Wachovia Securities Financial Network LLC. from 2006 to 2009 until they merged with Wells Fargo. He was employed at Wells Fargo Advisors Financial Network LLC from 2009 to 2017. According to BrokerCheck, several recently filed arbitration claims allege Schmidt misappropriated or absconded with customer money.
The burden of due diligence falls onto the broker and also their employing brokerage firm. It is required for a brokerage firm to adequately supervise the brokers and how they manage client funds. Brokers are required to follow the industry regulations enforced by the brokerage firm’s appointed manager. Failure to appoint a manager and follow industry regulations can result in a breach of fiduciary duty to the client.
Theft can occur when a broker utilizes client’s investment capital to fund another business venture, pay for personal expenses or any other purpose that serves their own personal gain rather than that client’s. This typically occurs when a broker moves money to their own personal account without the knowledge and/or consent of the client and the brokerage firm that they are employed with.
If your broker and/or brokerage firm has caused you to lose a substantial amount of capital due to lack of due diligence or theft of your investment funds, you have the potential of recovering some or even all of your money through FINRA arbitration.
FINRA arbitration is a streamlined way to recover your funds that were lost due to failure to provide due diligence or misrepresentation. The Silver Law Group solely works on a contingency fee basis, which means that you will not have to pay any fees upfront until we recover money for you.
Contact Our Firm if You’ve Invested with John Greg Schmidt
If you invested with John Greg Schmidt, Wells Fargo Advisors Financial Network LLC or Stifel, Nicolaus & Company, Inc. and have lost money doing so, then you have the potential to recover part or all of your losses. Our firm has many years of experience dealing with recovering investor losses from broker/brokerage misconduct and mismanagement through FINRA arbitration.
Silver Law Group is dedicated to representing the interests of investors who have been victims of investor fraud. If you have questions regarding your potential for recovery or legal rights, please contact Scott Silver or the Silver Law Group for a complimentary consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.