We want to share important news about Brent Schmidt, a financial advisor from Delano, Minnesota. Schmidt worked with Cetera Advisor Networks under Harvest Financial Services until recent events changed his career path.
FINRA, the financial industry watchdog, suspended Schmidt for allowing his business partner to fake customer signatures on 53 account documents. This serious violation earned him a $5,000 fine and a two-month suspension from December 16, 2024, to February 15, 2025.
The suspension stems from breaking FINRA Rules 2010 and 4511. Before this incident, LPL Financial fired Schmidt on June 17, 2022, after claims he signed documents for customers without permission.
Throughout his 25-year career, Schmidt has worked in 11 states and now has at least one mark on his BrokerCheck report as of November 25, 2024. Haselkorn & Thibaut is has started an investigation into these actions.
While no customers filed complaints about the false signatures, such actions create inaccurate records and go against FINRA’s Regulation Best Interest (Reg BI). This rule requires brokers to put their clients first.
Haselkorn & Thibaut now helps investors who may have lost money with advisors like Schmidt. Read on to learn what happened.
Key Takeaways
Table of Contents
- FINRA suspended Brent Schmidt for two months (Dec 16, 2024-Feb 15, 2025) and fined him $5,000 for allowing his business partner to falsify 53 customer documents.
- Schmidt broke FINRA Rules 2010 and 4511 while working at Cetera Advisor Networks under Harvest Financial Services before LPL Financial fired him on June 17, 2022.
- Despite the misconduct involving 9 customers’ signatures, no direct customer complaints were reported against Schmidt, though the violations affected Cetera’s record-keeping.
- Schmidt holds licenses in eleven states including Arizona, California, Colorado, and Minnesota, with his activities tracked under CRD number 3093473.
- Investors should check FINRA’s BrokerCheck before working with any financial advisor to avoid potential misconduct issues that could affect their investments.
Overview of Brent Schmidt’s Complaints
Brent Schmidt’s track record shows several red flags for investors. Based in Delano, Minnesota, Schmidt’s BrokerCheck report contains at least one disclosable event that should worry clients.
He worked with Cetera Advisor Networks under Harvest Financial Services until LPL Financial fired him on June 17, 2022. The complaints against Schmidt point to possible breaking of FINRA Rule 2010 and FINRA Rule 4511 about account papers and new account forms.
Schmidt has licenses in eleven states like Arizona, California, Colorado, and Minnesota. You can find his CRD number 3093473 in Financial Industry Regulatory Authority records. Clients have spoken up about problems with money transfer forms and bad investment choices while he managed their money.
These issues led to FINRA arbitration cases where investors tried to get back money they lost through securities laws.
Alleged Misconduct and FINRA Suspension
FINRA took serious action against Brent Schmidt through a formal Letter of Acceptance, Waiver, and Consent filed in November 2024. Our investigation revealed that Schmidt allowed his business partner to forge signatures of 9 customers on 53 different account documents.
This misconduct directly violated FINRA Rule 2010, which requires high standards of commercial honor, and FINRA Rule 4511, which governs proper record-keeping. The financial industry regulatory authority imposed a $5,000 fine on Schmidt and suspended him from December 16, 2024, through February 15, 2025 – a total of two months away from any broker-dealer activities.
The case against Schmidt at Cetera Advisor Networks shows how broker misconduct can harm investor trust.
Schmidt permitted falsification of important papers like new account applications and money transfer forms. Such actions break securities laws designed to protect clients from unauthorized transactions.
These findings raise important questions about supervision at Cetera Financial Group and highlight potential risks for clients who trusted their financial advisor. Next, we’ll examine how these actions affected Schmidt’s clients and Cetera Advisor Networks as a whole.
Impact on Clients and Cetera Advisor Networks
We found no customer complaints reported against Brent Schmidt, which is noteworthy in this situation. His actions primarily affected Cetera Advisor Networks’ record-keeping rather than causing direct investor losses.
The firm’s books became inaccurate due to his conduct with account documents and money transfer forms. This matters because FINRA Rule 4511 requires broker-dealers to maintain precise records.
The Office of the Chief Economist research shows financial advisors with past misconduct often harm future clients. This pattern raises concerns for investment advisers and securities firms like Cetera Investment Advisers who must follow strict compliance standards.
Regulation Best Interest demands brokers act in their retail customers’ best interests at all times. This rule requires recommendations based on accurate information with full disclosure of costs and fees.
Cetera Advisor Networks LLC, as a broker-dealer, must ensure their registered representatives follow these standards to protect investors. The financial industry regulatory authority (FINRA) created BrokerCheck specifically so investors can review advisor histories before trusting them with their money.
Proper documentation serves as the foundation for suitable investment advice and helps prevent unsuitable investments that could lead to FINRA arbitration claims. Next, we’ll examine our conclusions about this case and what investors should know moving forward.
Conclusion
Brent Schmidt’s case serves as a stark warning for investors who trust financial advisors with their money. FINRA’s suspension of Schmidt for allowing falsified customer signatures raises serious questions about oversight at Cetera Advisor Networks.
Investors must stay vigilant about who manages their assets and check FINRA’s BrokerCheck before working with any advisor. Financial misconduct often leaves a trail, as shown by Schmidt’s previous termination from LPL Financial for similar signature issues.
Our law firm offers free consultations for anyone concerned about their investments with Schmidt or other advisors facing regulatory actions. Your financial security matters too much to ignore red flags or misconduct from those entrusted with your future.
