Mark A. Schneider, of Omaha, Nebraska, a stockbroker registered with Northwestern Mutual Investment Services, LLC, has been terminated from employment on April 21, 2016, based upon allegations that he failed to accurately document his activities within the firm’s internal notes system; conduct violative of the firm’s business conduct policy.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that on June 12, 2008, a customer initiated investment related written complaint involving Schneider’s conduct was settled for $10,237.19 in damages based upon allegations that Schneider made misrepresentations to the customer concerning mutual funds effected in the customer’s account. Additionally, on July 14, 2010, a customer initiated investment related written complaint regarding Schneider’s activities was resolved for $44,306.00 in damages supported by allegations that the customer’s Schwab Yield Plus Fund was not accurately represented by Schneider.
Mark A. Schneider, of Omaha, Nebraska, a stockbroker registered with Northwestern Mutual Investment Services, LLC, has been terminated from employment on April 21, 2016, based upon allegations that he failed to accurately document his activities within the firm’s internal notes system; conduct violative of the firm’s business conduct policy.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that on June 12, 2008, a customer initiated investment related written complaint involving Schneider’s conduct was settled for $10,237.19 in damages based upon allegations that Schneider made misrepresentations to the customer concerning mutual funds effected in the customer’s account. Additionally, on July 14, 2010, a customer initiated investment related written complaint regarding Schneider’s activities was resolved for $44,306.00 in damages supported by allegations that the customer’s Schwab Yield Plus Fund was not accurately represented by Schneider.
This was not Schneider’s fault. The Schwab YieldPlus Fund was an: “ultra short-term bond fund,” with an the “average duration of its portfolio at one year or less” and a “higher-yield[ing] alternative to money-market funds; with a “goal””designed to offer higher yields than a money market fund while seeking minimal changes in share price; and having an “historical ability to minimize its share price fluctuations.”
Schwab also describes the Fund, which invests in only “investment grade securities” as providing “higher yields on your cash with only marginally higher risk, [which therefore] could be a smart alternative.” According to Schwab marketing materials: “The Schwab YieldPlus Fund is designed with your income needs in mind.” The fund’s “objective is to seek high current income with minimal changes in share price.”
However, unbeknownst to investors, on September 15, 2006, Schwab, in an effort to inflate the YieldPlus Fund’s yield and attract new investors, as more fully set forth herein, changed the YieldPlus Fund’s “Investment Limitations” to permit the concentration in excess of 25% of the Fund’s assets in otherwise risky Mortgage Backed Securities.
The next year, everyone lost almost half their money.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
