Raymond Daniel Schmidt—Borrowing Money from Clients

Cleveland stockbroker fraud lawyerRaymond Daniel Schmidt, Ex-LPL Broker, Allegedly Borrowed Money from Clients

Raymond D. Schmidt allegedly borrowed money from clients, which is a violation of securities regulations and against many securities brokerage firms’ policies, according to recent documents from FINRA. The former LPL Financial LLC broker allegedly borrowed nearly $2.3 million from clients to build a vacation rental property in Hawaii, according to FINRA.

Raymond D. Schmidt was a registered representative and financial advisor with LPL Financial in Oceanside, California, from July 2006 to August 2014, and then resigned from LPL while it investigated this conduct, according to FINRA.

Raymond D. Schmidt Allegedly Borrowed the Money from Seven Clients from 2009 to 2012, Faces $375,000 California Stat Lawsuit Alleging Elder Abuse and Negligence

Raymond D. Schmidt allegedly borrowed said money from seven clients between 2009 and 2012, a violation of industry rules, according to a settlement with FINRA. Schmidt did reveal his involvement with the “Pakalana Sanctuary” in Waimea, also known as Kamuela. However, according to FINRA, the venture began years earlier, without LPL’s knowledge.

Schmidt initially did not tell LPL about the Hawaiian property, allegedly, or customers’ loans in answers to several annual questionnaires that LPL requires its brokers to complete, according to FINRA. Later, however, he disclosed the property to LPL, but denied owning an interest, FINRA stated.

Schmidt is also the subject of a $375,000 lawsuit in a California state court, alleging elder abuse and negligence related to the plaintiff’s Hawaiian real estate investment, according to Schmidt’s public disclosure report.

The Peiffer Rosca Wolf Securities Lawyers Often Represent Investors

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of broker misconduct. 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 broker misconduct may 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.

Alan Rosca (1160 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.