Randy Jason Schneider, a former broker at New York, New York based Oppenheimer & Co. Inc., has been sanctioned based on the Financial Industry Regulatory Authority's (FINRA) findings that Mr. Schneider received checks totaling approximately $39,000 from an elderly customer to deposit into the customer's brokerage account for later purchases of bonds, but instead he either cashed or deposited the checks into his own bank account for his personal benefit and never disclosed the misappropriation to the customer. The customer never authorized Mr. Schneider to use the funds for his personal use. The findings stated that Mr. Schneider also deposited the customer's bearer bonds into his own brokerage account, sold the bonds and used the proceeds, totaling $223,000, for his personal use without disclosing the sale to the customer and without the customer's authorization to sell the bonds and take the proceeds for his personal use. The findings also stated that the customer's brother, another customer of Mr. Schneider's, delivered bearer bonds totaling approximately $20,000 to Mr. Schneider for deposit into his brokerage account, and Mr. Schneider provided him with a receipt evidencing acceptance of the bonds. However, Mr. Schneider sold the bonds and took the proceeds for his own use without authorization. The findings further included that Mr. Schneider wired portions of the funds and bond proceeds between his brokerage and personal bank accounts, which made it more difficult to trace them back to his customers.
Mr. Schneider failed to respond to FINRA requests for information, documents, and to appear for on-the-record testimony. Mr. Schneider, of West Orange, New Jersey, was barred from association with any FINRA member in any capacity and ordered to pay $282,000 plus interest in restitution to customers. Mr. Schneider appealed the OHO decision to the NAC, but the appeal was dismissed as abandoned.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to misappropriations such as those by Mr. Schneider can bring forth claims to recover losses against broker-dealers like Oppenheimer & Co. Have you suffered losses in your Oppenheimer & Co. Inc. account due to a misappropriation by your broker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Oppenheimer & Co. Inc. stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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