Former Ohio-based Stifel Nicolaus Broker Under Investigation After Arrest for Allegedly Stealing Money from a Client

Silver Law Group is investigating former Stifel, Nicolaus & Company, Incorporated (CRD# 793) broker Jon B. Schmidhammer (CRD# 1548931) after Stifel allowed him to resign following an arrest for allegedly stealing money from a client.

According to Schmidhammer’s FINRA BrokerCheck report, FINRA permanently barred Schmidhammer from acting as a broker or otherwise associating with firms that sell securities in September 2016 after he failed to respond to a FINRA request for information.  The permanent bar follows Schmidhammer’s resignation from Stifel in July 2016, according to his BrokerCheck report.

This was not Schmidhammer’s first dark mark on his BrokerCheck report.  In February 2004, the American Stock Exchange fined Schmidhammer $10,000 after charging him with inappropriately extending credit to a customer to satisfy margin requirements, violating his employing firm’s internal procedures regarding extension of credit, and misleading the firm in an attempt to avoid detection of his wrongdoing.  Nine months later, UBS Financial Services Inc. (CRD# 7059) discharged Schmidhammer for providing inaccurate statements on his pre-employment application.

Currently, Schmidhammer has one pending FINRA arbitration that was filed in October 2016.  The FINRA arbitration alleges unsuitable recommendations, negligence, and unauthorized trading among other allegations and damages in the amount of $500,000.

Schmidhammer is not the only Stifel broker permanently barred recently.  Chicago-based Assan Faal (CRD#  5863258) was permanently barred in June 2016 after he similarly failed to respond to a FINRA inquiry.

Stifel had employed Schmidhammer since 2009.

FINRA arbitration is a fast, efficient way to try to recover your lost investment funds due to excessive trading or misappropriation.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Jon Schmidhammer and/or Assan Faal and Stifel, Nicolaus & Company and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.