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Update: SEC Alleges Ex-Wells Fargo Rep John Schmidt Stole $1.6 Million From Elderly Clients

John Schmidt

Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on September 27, 2018 indicate that former Ohio-based Wells Fargo Advisors Financial Network broker/adviser John Schmidt, who was recently sanctioned by FINRA and barred from association with any FINRA member in any capacity, has received several resolved or pending customer disputes. Fitapelli Kurta is interested in speaking to 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 (2006-2017). 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, and one regulatory sanction.

According to a Financial Planning report published on September 25, 2018, the Securities and Exchange Commission has filed a complaint against Mr. Schmidt alleging that over a period of more than 14 years, he stole “more than $1.16 million from some seven of his older and wealthier clients, including some suffering from Alzheimer’s.” As part of this alleged fraud, the SEC says, he stole funds from those clients to make up for “shortfalls” in the accounts of about ten other clients, in the process creating “fake account statements” to conceal those latter clients’ “dwindling assets.” “In one instance,” according to the SEC’s complaint, “[Mr.] Schmidt continued to defraud a customer after his death.” The SEC is seeking disgorgement and civil penalties in the pending complaint.

In January 2018 a customer alleged John Schmidt, while employed at Wells Fargo Advisors, misappropriated funds. The customer is seeking unspecified damages in the pending complaint.

In 2017 a customer alleged John Schmidt, while employed at Wells Fargo Advisors, “absconded with monies belonging” to the client.” The complaint settled in June 2018 for $1,500,000.

In 2017 a customer alleged John Schmidt, while employed at Wells Fargo Advisors Financial Network, made written and verbal misrepresentations of the value of the customer’s investments. The complaint settled in March 2018 for more than $199,400.

In November 2017 FINRA sanctioned him in connection to allegations he failed to respond to a FINRA request for information. He was barred from association with any FINRA member in any capacity.

In 2017 he was discharged from Wells Fargo Advisors Financial Network in connection to allegations involving inaccurate account statements that were neither generated or approved by the firm, as well as allegations involving the unauthorized movement of funds between clients.

If you have lost money investing with John Schmidt, call Fitapelli Kurta at 877-238-4175 without delay. You may be entitled to recoup your losses. We accept all cases on contingency: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited by law, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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