Raymond Schmidt—Industry Bar for Alleged Undisclosed Loans

Ponzi scheme attorneysRaymond Schmidt, Ex-LPL broker, Barred over Loans Regarding Luxury Hawaii Vacation Property

Raymond Schmidt allegedly borrowed approximately $2.25 million from customers in order to build a Hawaiian island retreat without first properly notifying his firm, LPL Financial, according to FINRA.

Between 2009 and 2012, Raymond Schmidt, of Oceanside, California, allegedly took out $2.25 million in loans from seven customers without notifying his firm, FINRA stated in a settlement letter. FINRA Rules state that Brokers are generally prohibited from borrowing funds from customers, except in certain circumstances, and they must notify their firms in all cases.

The FINRA letter states that Schmidt reportedly submitted five compliance questionnaires to LPL in which he falsely denied borrowing funds and did not disclose the real estate investment in Hawaii as an outside business activity.

Schmidt Allegedly Made Disclosures about the Hawaiian Property to LPL in 2013, but Not Accused of Failing to Make Repayment

Schmidt did eventually, the FINRA letter reports, make disclosures about the property in Hawaii to LPL in 2013, however he falsely reported that the loans were for construction of a personal residence and that he did not own any interest in the vacation rental property.

It is important to note, however, that FINRA is not accusing Schmidt of failing to pay back the loans. He does, however, have to face a pending customer complaint for $375,000 for constructive fraud and elder abuse “relating to plaintiff’s investment in a Hawaii real estate project,” according to his BrokerCheck report.

The Peiffer Rosca Wolf Investor Rights Attorneys Often Represent Investors

The Peiffer Rosca Wolf investor rights attorneys often represent investors who lose money as a result of investment 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 investment misconduct may contact the investor rights attorneys 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 (1234 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.