John Greg Schmidt, a Dayton, Ohio Stockbroker, Allegedly Defrauded his Retail Brokerage Customers in a Protracted $1 Million Scheme Targeting the Elderly
John Schmidt allegedly defrauded his retail brokerage customers in a protracted $1 million scheme, according to an SEC Report under review by investor rights attorney Alan Rosca.
Schmidt allegedly conducted his scheme between 2003 and 2017, and purportedly stole roughly $1.1. million from seven customers, many of whom were elderly, the SEC notes.
Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to John Schmidt’s alleged investment fraud scheme. Investors who believe they may have lost money in activity related to John Schmidt’s alleged investment fraud scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Schmidt allegedly carried out his scheme by making unauthorized sales and withdrawals from variable annuities held by the customers, covertly transferring funds using fraudulent letters of authorization, and issuing phony account statements, the SEC states.
Most of the purported alleged victims were elderly with very little to no financial expertise and were reportedly particularly vulnerable, the SEC notes. Schmidt allegedly received over $230,000 in brokerage commissions from said customers, the Complaint states.
John Schmidt, without Authorization, Allegedly Would Sell Securities in One Customer Account & Transfer Funds to Other Accounts to Cover Shortfalls
John Gregory Schmidt would allegedly sell securities in one customer’s account and transfer said proceeds to another account to cover shortfalls in other customers’ accounts, according to the aforementioned SEC Report under review by attorney Alan Rosca.
John Schmidt was a representative of Wells Fargo from December 2006 to October 2017, and also worked with Stifel Nicolaus from May 2002 to December 2006, and worked at a branch office in Dayton, Ohio, the SEC notes. Schmidt has also been the subject of several customer complaints and was terminated by Wells Fargo for said alleged conduct.
The SEC’s complaint, filed in federal district court in the Southern District of Ohio, charges Schmidt with allegedly violating the antifraud provisions of the Securities Act, and the SEC is seeking a judgment ordering Schmidt to disgorge his ill-gotten gains with prejudgment interest, and to pay civil penalties.
Securities Lawyer Investigating
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating John Schmidt’s alleged investment fraud scheme. The firm takes most cases of this type on a contingency fee basis and advance 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, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of John Schmidt’s alleged investment fraud scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.