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SEC Now Investigating Former Broker John Greg Schmidt For Misappropriation Of $1.16M

sec-300x198Back in June, we told you about John Greg Schmidt (CRD#: 708094) who was barred by FINRA after a series of allegations of misappropriation of funds. Since then the Securities and Exchange Commission has also investigated Schmidt, and has now filed a civil action.

Schmidt was discharged by his last employer, Wells Fargo Advisors Financial Network, LLC (CRD#:11025), of Dayton, OH, after allegations of “unauthorized money movement between clients,” and inaccurate account statements that were not generated or approved by Wells Fargo.

The SEC initiated a civil action on 9/25/2018 against John Greg Schmidt. In it, the SEC states that from the period February 2013 through October 2017, he sold securities from at least seven of his customers who made money to pay the shortfalls of at least ten other customer accounts. Schmidt then transferred the money in between accounts without authorization from any of them. Schmidt provided his customers with falsified account statements. None of the customers had any knew that while they were taking withdrawals, their balances were decreasing. Schmidt continued to assure them that their balances were fine, and backed up the claim with the false account documents.

Many of the customers were elderly, and had “had little or no financial expertise.” Additionally, several of his customers had Alzheimer’s or other forms of dementia. At least five of these clients passed away during Schmidt’s fraud period.

Schmidt misappropriated a total of $1.16 million, and received over $230,000 in commissions during this fraud. The money came from customers who were either the source of, or the recipient of, these misappropriated funds.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.

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