Broker Barred: Former Stifel, Nicolaus & Company, Inc. Financial Advisor Jon Schmidhammer
Posted on Wednesday, July 18th, 2018 at 1:08 pm
Former Stifel, Nicolaus & Company, Inc. financial advisor Jon Schmidhammer (CRD# 1548931) barred by the Securities and Exchange Commission (SEC) regarding negligence, unsuitable management, unauthorized trading and securities violations related to a penny stock offering.
Schmidhammer was registered with Stifel, Nicolaus & Company, Inc. in Dublin, Ohio from 2009 to 2016, before he was terminated regarding, “Jon Schmidhammer resigned after his arrest for allegedly stealing money from a client.” Previously, Schmidhammer was terminated from employment at UBS Financial Services Inc. in Weehawken, New Jersey regarding, “Provided inaccurate statements on pre-employment application.”
In June 2018, the SEC barred Schmidhammer for his participation in an offering of a penny stock. Schmidhammer pled guilty to one count of unlawful securities practices, a second degree felony, in the criminal division of the Court of Common Pleas for Franklin County, Ohio. Schmidhammer was sentenced to five years of “Community Control Under Basic Supervision,” as well as sentenced to serve 30 consecutive weekends at the county jail and a term of post-release supervision, and to pay $196,387.25 in restitution.
In December 2016, FINRA barred Schmidhammer from acting as a broker or otherwise associating with firms that sell securities to the public after he failed to respond to FINRA request for information and he failed to request termination of his suspension within three months of the date of the Notice of Suspension.
In February 2004, the American Stock Exchanged charged Schmidhammer with inappropriately extending credit to a customer to satisfy margin requirements in the customer account, and failing to follow the firm’s internal procedures regarding the extension of credit, and misleading the firm in an attempt to avoid detection for his failure to follow such procedures. He was sanctioned to a monetary fine of $10,000.
Schmidhammer has been the subject of one customer complaint, according to his CRD report:
October 2016. “Claimant alleges negligence, unsuitable management, unauthorized trading, violations of the Ohio Securities Act, breach of contract, breach of fiduciary duty, and conversion.” The customer sought $500,000 in damages and the case was settled for $499,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Stifel, Nicolaus & Company, Inc. may be liable for investment or other losses suffered by Schmidhammer’s customers.
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