Securities Lawyers Blog
The Financial Industry Regulatory Authority (FINRA) recently barred broker Raymond Schmidt (Schmidt) due to Schmidt’s refusal to respond to requests made by the agency. FINRA found that from approximately May 2009, through November 2012, Schmidt borrowed approximately $2.25 million from seven customers of LPL Financial LLC (LPL) and also engaged in outside business activities without notifying the firm. FINRA also alleged that between 2009 and 2014, Schmidt submitted five false compliance questionnaires and three false disclosures of outside business activities and loans to the firm.
In July 2006, Schmidt became associated with LPL. In a termination notice dated September 24, 2014, the LPL reported that on August 25, 2014, Schmidt had resigned while under internal review by LPL.
FINRA found that in or around May 2009, Schmidt purchased a real estate investment in Hawaii that he developed into a vacation rental property. In May 2012 that property opened for business. FINRA found that Schmidt was the sole owner and operator of the property and the business but failed to notify LPL of this outside business activity. FINRA alleged that from approximately May 2009, through November 2012, Schmidt borrowed $2,254,818 from seven LPL customers for the purpose of purchasing the real estate in Hawaii and constructing a vacation rental property.