John Gregory Schmidt, of Dayton, Ohio, Allegedly Ran an Investment Scheme which Misappropriated over $1.6 Million from Clients, Many who Were Elderly
John Schmidt, a former Dayton investment advisor, allegedly misappropriated more than $1.6 million from clients — many who were elderly — for the past 14 years, according to SEC Reports under review by investor rights attorney Alan Rosca.
Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to John Schmidt’s alleged investment scheme. Investors who believe they may have lost money in activity related to John Schmidt are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
The SEC has described Schmidt’s long-running scheme in the following manner:
From at least 2003 through 2017, Schmidt betrayed his customers’ trust by perpetrating a classic fraudulent scheme: he robbed Peter to pay Paul.
John Schmidt Allegedly Sold the Securities of Customers & Covertly Transferred over $1 Million in Proceeds to 10 other Customers to Hide Shortfalls in Accounts
John Schmidt, 67, and a resident of Bellbrook, Ohio, allegedly sold the securities of some of his customers and reportedly covertly transferred over $1 million in proceeds to 10 other customers to cover shortfalls in their accounts, according to the aforementioned SEC Reports.
The SEC says Schmidt, 67, a Bellbrook resident, attempted to conceal unauthorized sales and withdrawals from variable annuities held by customers by secretly transferring funds using fraudulent letters of authorization, and issuing fake account statements, the SEC notes.
The SEC also states:
Schmidt concealed the shortfalls from his customers and repeatedly lied to them about the true state of their investments.
Schmidt, from February 2013 through October 2017, also allegedly took in over $230,000 in commissions from customers who were either the source of, or recipient of, misappropriated funds, the SEC notes. Schmidt’s alleged scheme, however, started to fall apart in the summer of 2017 when Schmidt was asked to respond to an inquiry by the Ohio Department of Insurance, according to the SEC.
Finally, the SEC states:
Most of the injured customers were elderly with little to no financial expertise and were particularly vulnerable… Schmidt received over $230,000 in brokerage commissions from these customers.
Securities Lawyer Investigating
The Rosca Scarlato LLC 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 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 scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
