Raymond Daniel Schmidt, a former registered representative with the Oceanside, California branch of LPL Financial LLC (LPL Financial), consented to, but did not admit to or deny, the sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he borrowed over $2.25 million from customers, failed to disclose his outside business activity, and falsely reported, in several firm questionnaires, his involvement in this misconduct.
Without admitting or denying FINRA’s findings, Raymond Schmidt, of Oceanside, California, consented to the sanctions and to the findings that he borrowed more than $2.25 million from seven LPL Financial customers, in violation of FINRA Rule 3240, which prohibits registered representatives from borrowing or lending money to customers unless permitted under the firm’s rules. Mr. Schmidt allegedly borrowed the money from the LPL customers for the purpose of constructing a vacation property in Hawaii. Further, FINRA found that Raymond Schmidt failed to notify his member firm of his involvement in this outside business activity.
FINRA also found that Mr. Schmidt falsely answered several of his firm’s compliance questionnaires when he denied borrowing customer funds. When FINRA requested documents and information for their investigation to this matter, Mr. Schmidt allegedly stated in a call with FINRA’s Department of Enforcement that he would neither provide the requested documents nor cooperate further with the investigation. Due to the above-described misconduct, Raymond Schmidt was permanently barred by FINRA.
Stockbrokers and other financial industry professionals have been known to engage in different types of misconduct which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker dealers to establish and implement a supervisory system. The implementation of these rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be a liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s prohibited conduct can file a claim to recover damages against broker dealers like LPL Financial, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your LPL Financial investment account due to your stockbroker’s prohibited conduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against LPL Financial stockbrokers for and/or other unauthorized and illegal conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 33 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.