FINRA's Department of Enforcement alleged that broker Glenn Andrew Schwarzkopf engaged in severe financial misconduct to the tune of nearly one-quarter of a million dollars, nearly 60% of which he pocketed or otherwise converted for personal use. During the alleged fraudulent activity, Schwarzkopf was associated with Citigroup Global Markets Inc. (March - June 2010) and First Allied Securities, Inc. (June 2010 - May 2011).
Specifically, FINRA Enforcement's complaint alleges that Schwarzkopf persuaded a customer to withdraw funds from a variable annuity (VA) account, effecting a transfer at least $242,756.17 to an account Schwarzkopf owned, with the broker allegedly promising to invest the money on behalf of the customer.
According to FINRA, that never happened. Instead, the complaint alleges that Schwarzkopf diverted at least $139,697.23 of the VA funds to pay off his own personal American Express credit card bills.
Though FINRA has made at least three attempts to contact Schwarzkopf, the Authority reports he has not responded to any of these requests, and as such, has charged him with a second cause of action (failure to respond).
Two prior customer complaints against Schwarzkopf—one received in 2005 and the other in 2010—resulted in two settlements totaling nearly $30,000. (BrokerCheck). In 2005, while at Citicorp, a client alleged: "I believe that my signature has been forged," while in 2010, with Citigroup, a second client alleged Schwarzkopf had effected mutual fund transactions without disclosing associated sales charges to the customer first.
If you have invested with Glenn Andrew Schwarzkopf or with any broker or firm who you suspect has given inappropriate advise or engaged in financial misconduct that 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.