RIA Compliance Blog
Earlier this year, the Kansas Court of Appeals affirmed a district court decision holding that Mark R. Schneider (“Schneider”), an investment adviser representative and broker-dealer, violated the Kansas Uniform Securities Act by recommending nontraditional exchange-traded funds (“ETFs”) to a client whose investment objective was to produce income. Schneider was ordered to pay $94,720.60 in restitution and a $25,000 civil penalty.
For over 20 years, Schneider acted as investment adviser to Mary Lou and Jeffrey Silverman. Schneider oversaw the Silvermans’ assets, tax returns, and life insurance, and he had discretionary authority over their investments. In 2010, Mr. Silverman died, and Mrs. Silverman obtained $1,150,000 from Mr. Silverman’s life insurance policy. In May 2010, Schneider formulated a financial plan to help Mrs. Silverman garner income from investments she would make using the money from the life insurance policy. Continue reading ›