Previously registered broker Steven Schisler (also known as Steven Douglas Schisler) is the respondent of a FINRA complaint filed in April 2021 that alleges he committed nine separate violations of FINRA rules, including making an unsuitable recommendation to two customers and engaging in unethical business misconduct with another customer between April 2009 and October 2020.
Investor rights attorney Alan Rosca and his colleagues, of Rosca Scarlato LLC law firm, are investigating conduct related to broker Steven Schisler’s alleged FINRA violations. Investors who are concerned about their investments with Schisler may reach out to attorney Alan Rosca or his colleagues for a free, no-obligation consultation and discussion of potential options, or to provide any useful information. Interested Schisler investors may call 888-998-0530, send an email at arosca@rscounsel.law, or complete the contact form on this webpage.
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FINRA Complaint States That Steven Schisler Allegedly Committed Nine Separate Violations
The FINRA complaint mentions that Steven Schisler allegedly persuaded two elderly, married customers to invest $300,000 in a promissory note to finance a commercial property in September 2014 during his employment with IFS Securities, the firm where he was most recently registered, in Atlanta, Georgia.
The recommended investment was allegedly limited to accredited investors, which the married customers were not, according to the complaint. Additionally, Schisler allegedly failed to conduct due diligence before recommending the investment and thus allegedly failed to discover that one of the partners for the company issuing the note has previously been barred from the securities industry for defrauding investors, the complaint states.
Secondly, it is alleged that Schisler participated in a private securities transaction with the same customers without the approval of his firm. The FINRA complaint mentions that Schisler allegedly facilitated the investment in the aforementioned note by the customers, despite reportedly being told by his firm that he could not do so.
Furthermore, the complaint adds that in 2017 after the issuer of the above-mentioned promissory note defaulted, one of the customers filed a lawsuit naming Schisler as one of the defendants. The same customer allegedly filed a subsequent arbitration against Shisler, the complaint notes. According to the complaint, Schisler willfully failed to timely amend his Form U4 to report the civil lawsuit and the arbitration.
As of the date of this article, the disclosures in Steven Schisler’s FINRA Brokercheck report indicate he is involved in a civil litigation reportedly filed in the Nevada County Superior Court. The disclosure reveals that the plaintiff is seeking restitution in connection with a real estate transaction. The plaintiff identified as Eldena Cross is alleging, among others, conversion, and breach of fiduciary duty.
In January 2019, Steven Douglas Schisler allegedly entered in a settlement agreement to resolve the lawsuit and arbitration, but he allegedly required the customer to support his request for expungement, a condition prohibited under FINRA Rules, the complaint alleges.
It is also alleged that Schisler lied under oath during the expungement hearing that followed in April 2019. According to the FINRA complaint, Schisler allegedly falsely testified that he did “not personally” introduce the customers to the issuer.
The complaint mentions that Schisler falsely stated during an on-the-record testimony to FINRA’s Department of Enforcement in February 2020 that the $9,500 finder’s fee he received was a “personal loan” and that he was unaware of the customers making the investment at the time.
The seventh cause of action in FINRA’s complaint alleges that Schisler engaged in unethical business conduct by allegedly asking another elderly, retired customer to lend him a $50,000 promissory note in April 2009. When Schisler allegedly defaulted on the note, which was secured by a mortgaged property, the property was foreclosed. He reportedly failed to mention this to the customer and delayed paying her the $50,000 principal and accrued interest for more than six years after the note was due.
The complaint also adds that Schisler allegedly violated FINRA Rules by allegedly falsely responding with “no” on a firm compliance questionnaire asking if he had ever borrowed money from a current or former customer.
The ninth allegation included in FINRA’s complaint against Schisler alleges that he used unmonitored, non-firm email accounts to conduct securities business with customers 44 times.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Investor Rights Attorneys Investigating Potential Options
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Steven Schisler’s allegations of violating FINRA rules, among others.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who are concerned in connection with broker Steven Schisler’s alleged FINRA rules violations may contact attorney Alan Rosca or his colleagues for a free no-obligation case evaluation and discussion of potential options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage