Kevin Schaefer (Kevin Joseph Schaefer CRD:# 1286030) is a registered broke and investment advisor currently employed with Wells Fargo Clearing Services, LLC (CRD#: 19616) of San Francisco, CA. His previous employers include Morgan Stanley Smith Barney LLC (CRD#:149777) and UBS Financial Services Inc. (CRD#:8174), both of San Francisco, and Smith Barney Shearson Inc. (CRD#:7059) of New York, NY. He has been in the industry since 1984.
Schaefer is the subject of two currently pending disputes. The first, filed on 6/12/2020, alleges “unsuitable investment recommendations and misrepresentations.” The client requests damages of $1,000,000.
The second, filed on 6/4/2020, alleges “unsuitable investment recommendations, failure to follow instructions and misrepresentations from 2012 until 2020.” The client requests damages of $300,000.
Another previous dispute was settled. Filed 5/27/2008, the client alleges that the shares of stock that were purchased were supposed to be auction rate security bonds. The client requested damages of $5,000. Ultimately, the firm agreed to repurchase the ARS securities pursuant to an agreement with “several regulatory bodies.” Schaefer did not participate in the settlement.
Schaefer was also dismissed with prejudice in 1996 from Paine Webber after a client alleged “fraudulent non-disclosure, negligent misrepresentation, breach of fiduciary duty, and failure to supervise with regard to their trading in the common stock of Syntech.” The client requested damages of $100,000, and the firm settled the case for $14,000.
Unsuitable Investment Recommendations Allegations
Multiple allegations against Schaefer allege unsuitable investment advice. Investors are often not as informed or sophisticated as their advisers and brokers, so they rely on them to give suitable advice.
Registered persons are required to know their customers and recommend suitable investments based on their knowledge of their age, risk tolerance, and liquidity needs. Brokers may ignore their client’s needs to sell them higher commission, unsuitable investments.
Unsuitable investment advice is one of the most common complaints customers make against their brokers or advisers in FINRA arbitration claims. If you have losses due to unsuitable investment advice, you may have a claim to recover those losses.
Did You Invest With Kevin Schaefer?
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