News reports and public records published by the Financial Industry Regulatory Authority (FINRA), accessed on January 4, 2019, indicate that forgery and other charges have been filed against former Ohio-based Wells Fargo Advisors broker/adviser John Schmidt, who has been sanctioned by FINRA and barred from acting as a broker or otherwise associating with a broker-dealer firm. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Schmidt (CRD# 708094).
John Schmidt has spent 37 years in the securities industry and was most recently registered with Wells Fargo Advisors Financial Network in Dayton, Ohio (2006-2007). Previous registrations include Stifel Nicolaus & Company in Dayton, Ohio (2002-2006); First Union Securities in St. Louis, Missouri (1999-2002); First Union Capital Markets in Charlotte, North Carolina (1996-1999); Painewebber in Weehawken, New Jersey (1990-1996); Prudential-Bache Securities in New York, New York (1986-1990); IDS Life Insurance Company (1980-1986); IDS Marketing Corporation (1980-1986); and IDS Financial Services (1980-1986). He is currently not registered with any state or firm.
According to his BrokerCheck report, he has received three customer complaints, two pending customer complaints, one regulatory sanction, and one pending civil action, and he was terminated from a former employer in connection to alleged rule violations.
A Financial Advisor IQ report published on January 3, 2019 states that prosecutors in Montgomery County, Ohio have charged John Schmidt with “124 counts of forgery, two counts of theft from an elderly or disabled adult, and two counts of fraud.” An Investment News report published on January 2, 2019 includes a statement from prosecutor Mat Heck: “For years, this defendant defrauded a number of investors, many of them elderly or with dementia,” he said. “He had to keep stealing from more investors in order to cover for the thefts from other investors.”
The Investment News report goes on to describe allegations that Mr. Schmidt “created and falsified financial statements” in his alleged Ponzi-like scheme, that he sold securities without his investors’ authorization, and that he received almost $250,000 in commissions on the transactions in question.
Mr. Schmidt was previously terminated from his position at Wells Fargo Advisors Financial Network, in 2017, in connection to allegations “of unauthorized money movement between clients” as well as allegations involving inaccurate account statements. He is also the subject of pending SEC charges alleging that he participated in a scheme from 2003 to 2017 in which he “repeatedly sold securities belonging to some of his brokerage customers” and transferred the proceeds of those sales to cover shortfalls in other accounts, all without the customers’ authorization, ultimately misappropriating “$1.16 million from accounts belonging to seven customers.”
If you or someone you know has lost money investing with John Schmidt, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.