Morgan Stanley’s Michael Schmidt: Complaint Alleges Forgery

Milwaukee financial advisor Michael Schmidt (CRD# 2403903) allegedly misappropriated customer funds and engaged in forgery, according to a recent investor complaint. Records provided by the Financial Industry Regulatory Authority indicate that he is a broker and an investment advisor with Morgan Stanley.

Mr. Schmidt’s BrokerCheck report discloses one investor complaint. Filed in December 2022, it alleges that as a representative of Morgan Stanley, he engaged in forgery and misappropriated funds from an inherited IRA account between 2019 and 2022. The pending complaint alleges unspecified damages.

Investors should be aware that the misappropriation of customer funds may be considered a violation of FINRA Rule 2150, which states that no FINRA-associated person “shall make improper use of a customer’s securities or funds.” It may also be considered a violation of FINRA Rule 2010, which stipulates that brokers like Mr. Schmidt must “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business. Brokers who violate these rules may be held liable for damages.

According to the Financial Industry Regulatory Authority, Michael Schmidt holds 29 years of securities industry experience. Based in Milwaukee, Wisconsin, he has been a broker and an investment advisor with Morgan Stanley since 2009. He was previously registered with Citigroup Global Markets in Milwaukee from 1993 until 2009. His credentials include the passage of six securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Uniform Investment Adviser Law Examination, or Series 65; the Futures Managed Funds Examination, or Series 31; the Uniform Securities Agent State Law Examination, or Series 63; the National Commodity Futures Examination, or Series 3; and the Securities Industry Essentials Examination, or SIE. He is licensed in Arizona, California, Colorado, Florida, Illinois, Minnesota, New Mexico, New York, Texas, Virginia, and Wisconsin. (Information current as of January 14, 2023.)

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