Raymond Daniel Schmidt Barred After Borrowing $2.25 Million from LPL Financial Clients

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FINRA barred former LPL Financial broker Raymond Daniel Schmidt of Oceanside, California for borrowing a total of $2.25 million from multiple clients to build a house in Hawaii without informing his firm of the true nature of this multi-million dollar activity.

According to the findings, Schmidt began borrowing money from his clients in 2009, but failed to inform LPL Financial of the purpose of this outside business activity, acquiring the $2.25m total from seven clients during a three-year period. Shortly afterward, Schmidt began renting out his built-up property called Pakalana Sanctuary, listing it on the market for $2.4 million.

The findings state that in addition to simply failing to inform LPL of this activity, Schmidt falsely stated on firm documents that the reason for the loans was related to his personal residence, rather than one he planned to rent or sell. He also allegedly stated that he owned no interest in the vacation rental property.

Schmidt's BrokerCheck report indicates a pending client complaint alleging elder abuse, breach of fiduciary duty, unfair business practices and professional negligence.

If you have invested with former LPL Financial broker Raymond Daniel Schmidt or any other broker or financial adviser who has concealed outside business activities or borrowed money from you which has proven harmful to your investment or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

News: Ex-LPL Broker Barred Over Loans for Luxury Hawaii Vacation Rental (InvestmentNews)