Raymond Schmidt—Industry Bar for Alleged Undisclosed Loans
Raymond 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 Wolf Carr & Kane Investor Rights Attorneys Often Represent Investors
The Peiffer Wolf Carr & Kane 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 Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.