Kevin Joseph Schaefer of San Francisco California a stockbroker and investment adviser representative of Merrill Lynch Pierce Fenner Smith Incorporated is the subject of a customer initiated investment related arbitration claim in which the customer requested $1,000,000.00 in damages supported by accusations of Schaefer making misrepresentations and providing unsuitable investment advice with respect to the customer’s investments in structured products as well as fixed income products and private placements during the period that Schaefer was associated with Merrill Lynch. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01865 (June 12, 2020).
Schaefer has been identified in five additional customer initiated investment related disputes concerning allegations of his misconduct while employed by PaineWebber, Merrill Lynch and UBS Financial Services. FINRA Public Disclosure confirms that Schaefer is referenced in a customer initiated investment related arbitration claim which was settled for $14,000.00 in damages based upon accusations that a fiduciary duty that was owed to the customer had been breached and that misrepresentations and omissions were made by the stockbroker concerning investments that he sold to the PaineWebber customer.
Another customer filed an investment related complaint in regard to Schaefer’s conduct where the customer sought unspecified damages founded upon allegations that the customer had been sold unsuitable and misrepresented stocks from Schaefer during the time that he was associated with PaineWebber. The complaint alleges that investment details were fraudulently concealed from the customer.
Schaefer is also the subject of a customer initiated investment related written complaint which was settled for $600,000.00 in damages supported by accusations of the UBS customer being sold bad auction rate securities which resulted in losses. The complaint also alleges that the customer was not told about the risk of bonds resetting to lower interest rates. On January 4, 2017, another customer filed an investment related complaint involving Schaefer’s conduct in which the customer requested unspecified damages based upon allegations that investment recommendations made by Schaefer were not suitable for the Merrill Lynch customer and that misrepresentations were made to the customer regarding municipal debt investments between September of 2012 and December of 2016.
Schaefer is also referenced in a customer initiated investment related arbitration claim where the customer sought $300,000.00 in damages founded upon accusations that between 2012 and 2020, the customer’s investment instructions had been disregarded and that unsuitable investment advice was provided by Schaefer regarding alternative investments. FINRA Arbitration No. 20-01725 (June 4, 2020).
Schaefer’s registration with Merrill Lynch has been terminated as of August 19, 2019. Since August 16, 2019, he has been a stockbroker and investment adviser representative of Wells Fargo Clearing Services.