California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Broker Misrepresentation
Brokerage Firms Sued
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Are you a new client?
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

SEC Joins FINRA in Barring Arrested WF Broker John Schmidt over Elder Fraud

Two months after his arrest for fraud and forgery in an alleged Ponzi scheme targeting "particularly vulnerable" clients, including elderly investors and those with diminished mental capacity, such as Alzheimer's and dementia patients, former Wells Fargo Advisors representative John Gregory Schmidt suffered another setback as the SEC barred him from the securities industry.

The SEC's findings reveal that Schmidt (CRD #708094) misappropriated $1.16 million from vulnerable customers and transferred cash to others in a Ponzi-like fraud, misrepresenting to his clients material information, such as the true status of their accounts. For example, Schmidt purportedly sent customers fake account statements that grossly overstated balances and made false assurances as to returns, executing unauthorized variable annuity (VA) sales from certain clients in order to pay off others, all while concealing the misappropriation from his victims.

In addition to the unauthorized VA sales, stockbroker Schmidt reportedly used letters of authorization (LOAs) in a fraudulent manner, in order to liquidate securities and transfer additional money out of his customers' accounts, all while failing to disclose this use of LOAs to the affected customers. The SEC charged that Schmidt fraudulently induced at least one client to sign an LOA and recommended at least one such transfer through a false promise of returns.

Investigators wrote that broker Schmidt continued to reap rewards such as commissions while his customers suffered losses. At least five of Schmidt's victims reportedly died during the course of the fraudulent scheme.

FINRA previously barred stock broker Schmidt in 2017 for failing to respond to FINRA's request for information relative to the fraud, misappropriation, and elder abuse charges.

If you have invested with John Gregory Schmidt, formerly of the Wells Fargo Advisors Financial Network, or with any broker or financial adviser who fraudulently misappropriated funds or abused a letter-of-authorization or other financial document in order to illicitly transfer funds out of or liquidate your securities account, which has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.