Scott Thomas Schultz of Okemos Michigan a stockbroker formerly registered with Calton Associates Inc. has been fined $10,000.00 by the Michigan Department of Licensing and Regulatory Affairs Corporations Securities and Commercial Licensing Bureau according to an Order based on accusations that Schultz engaged in investment advisory services in the state on behalf of Scott Schultz Closed-End Funds Inc. despite Schultz failing to be registered in Michigan. Case No. 332016 (July 27, 2018).
This is not the first time that Schultz has been sanctioned by a securities regulator for misconduct. Particularly, Schultz was fined $100,000.00 by Securities and Exchange Commission (SEC) based upon an Order containing findings that Schultz marked the closed on trades placed by the firm in thinly-traded closed-end funds, and made misrepresentations concerning investment portfolio strategies offered by the firm to its customers. Schultz was ordered to cease and desist committing violation of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Investment Advisers Act Sections 206(1), 206(2) and 206(4) as well as Rule 206(4)-1(A)(5). Admin File No. 3-12136 (Dec. 28, 2005).
Thereafter, Schultz’s securities registration was denied by the Florida Office of Financial Regulation according to a Consent Order based on the SEC sanctioning Schultz for his activities. Case No. 0340-S-6/07.
Schultz’s registration with Calton Associates Inc. has been terminated as of February 2, 2017.
