Former Lincoln Financial Advisors Corporation Broker George Schmidt Jr. Investment Losses
Posted on Wednesday, February 5th, 2020 at 10:27 pm
Were you the victim of former Lincoln Financial Advisors Corporation broker George Schmidt Jr. (CRD# 1082936)? Schmidt has been registered with Lincoln Financial Advisors Corporation in Melville, New York from 2012 to 2019, when he was terminated regarding, “Registered Representative was terminated after allegation of misappropriation related to undisclosed outside business activity serving as Trustee for a non-family member.”
Schmidt has been the subject of four customer complaints between 2004 and 2019, one of which was denied, according to his CRD report:
October 2019. “Claimant alleges LFA and RR breached their fiduciary duties in regard to an account and the RR made unauthorized withdrawals from two annuities.” The customer is seeking $1,191,674 in damages and the case is currently pending. This complaint was regarding fixed and variable annuities.
June 2010. “Client alleges that the variable annuity that she purchased in February of 2008 (by a transfer from an annuity within an IRA from another carrier)was unsuitable given her age, financial condition, investment experience and overall risk tolerance. Client further alleges that the annuity lost 57% of its value from February 2008 through March 2010, notwithstanding that the registered representative had assured her that he would be able to recoup the losses. Client has requested damages in the amount of $147,511.00, plus costs, fees and expenses and has requested that the annuity contract be terminated without penalty or other charges.” The customer sought $147,511 in damages and the case was settled for $166,400.83. The complaint was regarding variable annuities.
June 2004. “Arbitration names PMG Securities as a respondent. However, Mr. Schmidt is not named in this proceeding as a respondent. Arbitration alleges, however, that Mr. Schmidt held himself out as a registered representative properly licensed with PMG Securities and who handled the claimant’s investments. The claimants allege, among other things, that PMG, through its unlicensed agent Mr. Schmidt, represented to claimants that they would have a fixed annuity for a period of one year and then would have an opportunity to determine how to invest the funds with the variable annuity component thereafter. Respondent PMG ignored claimants’ wishes and embarked on a plan to transfer funds to the variable annuity component almost immediately. The funds were allocated to sub accounts consisting of high-risk aggressive growth mutual funds totally unsuitable for the claimants and more importantly, were unauthorized. Claimants further allege that PMG through Schmidt prepared false and fraudulent documentation and engaged in forgeries of the claimants and also of Denise Fleming, another agent of PMG. Note that the alleged compensatory damages are disclosed as zero. This is because the damage allegation is made against PMG Securities and does not mention Mr. Schmidt.” The case was settled for $45,000.
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, Lincoln Financial Advisors Corporation may be liable for investment or other losses suffered by Schmidt’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.