Jerry Allen Schutte- Private Securities transactions
Jerry Allen Schutte Allegedly Engaged in a $150,000 Private Securities Transaction by Entering into an Equity Participation Agreement with a Customer of Northwestern Mutual Investment Services, LLC without Providing Proper Prior Written Notice from His Firm
Jerry Allen Schutte allegedly participated in a $150,000 private securities transaction by entering into an equity participation agreement and a corresponding promissory note with a customer of Northwestern Mutual Investment Services, LLC without first providing proper prior written notice to the firm, according to the a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).
Schutte’s alleged investment was a real estate project which he operated, the AWC notes.
Jerry Allen Schutte was registered at Northwestern Mutual Investment Services, LLC as a General Securities representative until June 2014, when he voluntarily resigned from the firm, the AWC reports.
Jerry Allen Schutte Suspended and Fined $5,000 for Allegedly Participating in a $150,000 Private Securities Transaction
Jerry Allen Schutte worked with a client, known only as EV, for over twenty years, and, on November 29, 2010, allegedly entered into an equity participation agreement and a corresponding promissory note with EV in which EV invested $150,000 in a real estate project ran by Schutte, according to the AWC.
Under the terms of the equity participation agreement and promissory note, Schutte was allegedly set to pay EV half of the profits from the sale of the developed lots as well as $13,000 per year in interest, the AWC notes.
As NASD Rule prohibit its registered representatives ‘from participating in any manner in any transaction that involves any form of securities without prior written notice….”, Schutte allegedly violated NASD Rules and hence has been suspended and fined $5,000 by FINRA, the AWC reports. One should also note that, according to the AWC, Jerry Allen Schutte neither admitted nor denied the FINRA findings.
The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors
The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of brokers engaging in undisclosed outside business activities. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of brokers conducting undisclosed outside business activities are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.