Bill Schumann: H. Beck Denied Non-Traded REIT/BDC Complaint

Wheaton, Illinois financial advisor Bill Schumann (CRD# 1604894) has received multiple investor complaints alleging his conduct resulted in damages. Financial Industry Regulatory Authority records indicate that he is a broker and an investment advisor with Grove Point Investments and Grove Point Advisors, doing business as Schumann Financial.

Mr. Schumann’s BrokerCheck report discloses four investor complaints. The most recent, filed in December 2022, alleged that as a representative of H. Beck, he misrepresented material facts relating to investments in non-traded real restate investment trusts (REITs) and business development companies (BDCs) that suffered poor performance. The complaint alleged damages of more than $160,000 and was denied by the firm.

A second investor complaint, filed in 2019, alleged that he recommended unsuitable investments and failed to conduct appropriate supervision and due diligence. In 2020 the complaint reached a settlement of $87,500. In a statement included with the 2019 complaint’s disclosure, Mr. Schumann defended himself against the allegations, noting that he was not a named respondent in the complaint. “The complaint arises from certain alternative investments, which were a subset of the client’s overall invested assets,” he wrote in part. “I only recommended these alternative investments to this client after their suitability was confirmed by extensive communications concerning overall financial objectives, targeted financial objectives, investment horizon, risk tolerances, tax objectives and related issues. The specific alternative investments at issue served specific needs for this client.”

A third investor complaint, filed in 2016, alleged he “recommended unsuitable investments in mutual funds, a non-traded REIT and a variable annuity.” In 2017 the complaint reached an award to the customer of $27,000. The complaint’s disclosure includes a statement by Mr. Schumann defending himself against the allegations. “After extensive communications with the client, I tailored a comprehensive, integrated investment plan that would best serve his and his family’s needs, consistent with their stated liquidity needs, risk tolerances and investment objectives,” he wrote. “The allegations contained in the client’s complaint against H. Beck (I was not named a defendant or respondent), which has since been settled by H. Beck, are without merit.”

A fourth investor complaint, filed in 2016, alleged that as a representative of H. Beck, he recommended an unsuitable variable annuity investment. The complaint alleged damages of $20,000 and was denied by the firm.

According to the Financial Industry Regulatory Authority, Bill Schumann holds 36 years of securities industry experience. Based in Wheaton, Illinois, he has been a broker with Grove Point Investments since 2009 and an investment advisor with Grove Point Advisors since 2021, respectively, doing business as Schumann Financial. His past registrations include H. Beck (Rockville, Maryland; 2015-2021), Waterstone Financial Group (Wheaton, Illinois; 2002-2009), Dreher & Associates (Oakbrook Terrace, Illinois; 1989-2002), FSC Securities Corporation (1987-1989), and Gary-Wheaton Stock Brokerage (1987). He currently holds 41 state licenses. (Information current as of January 14, 2023.)

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