Brokerage Fraud 



   





Reviews


The authors have taken the rules and regulations of the brokerage industry and put them in laymen’s terms. -- Professor William C. Tyson, The Wharton School & The Law School of the University of Pennsylvania


The Book, Brokerage Fraud is a must read for all compliance professionals and brokerage firm's compliance and legal departments.

Complinet.com


This book is a timely wake up call to the brokerage industry to clean up its ways. -- George D. Mullen, Vice President UBS PaineWebber


Tracy Stoneman and Douglas Schulz certainly know what Wall Street brokerage firms wish you didn't. -- Evan Cooper, Editor-in-Chief, On Wall Street, Co-Author


This book can save you thousands of dollars and loads of headaches! -- Jordan E. Goodman, author of Everyone's Money Book


Had "Brokerage Fraud" been available to my wife and I eight years ago, it may very well have saved us the fortune we lost to a mercenary industry that promotes itself as caring and responsible, when in fact it cares mostly for itself.


"Brokerage Fraud" is frank and friendly, organized, comprehensive, easy to digest -- and quite unique, too, because the distinguished authors tell all about an autonomous, all-powerful institution that routinely sheers the uninitiated."


". . . I am an attorney and an investor. Yet, I must say that each chapter of 'Brokerage Fraud' brought new information and insight that is invaluable . ."


 Mr. Schulz - Resume 


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Mr. Schulz contributes 10% of his income to animal welfare, rights, and protection.





Where Expertise and Experience Meet!

Welcome to the home page of Douglas J. Schulz, President of Invest Securities Consulting, Inc. Mr. Schulz is a Certified Regulatory Compliance Professional (CRCP) who has been hired in over 1,125 securities related matters. Mr. Schulz has testified in over 630 securities arbitrations and civil cases regarding investment and brokerage disputes.

                Douglas J. Schulz

 


                                   

CONTACT US:

(719) 783-3230


     Direct Email Link   


EXPERT \Ex”pert\, n. 1. An expert or experienced person: one instructed by experience, one who has skill, experience or extensive knowledge in his calling or in any special branch of learning.

Proven Quality Over Time


Douglas J. Schulz, CRCP
Invest Securities Consulting, Inc.

  Read about Mr. Schulz 

Invest Securities Consulting

In The News

Douglas J. Schulz, New York Times:

"That he (Johnny Burris, JP Morgan) was the subject of three complaints is significant, because that is a threshold at which a broker may be subjected to “heightened scrutiny” by regulators. Most brokerage firms won’t consider hiring a broker with three or more such complaints, no matter what the disposition, according to Douglas J. Schulz of Invest Securities Consulting. “It’s a very serious black mark,” he (Douglas Schulz, Invest Securities Consulting) said."


Douglas J. Schulz, Denver Post:

“Schwab would like everyone to think that it does not have conflicts, but that’s not totally true,” says Douglas Schulz, expert witness in security fraud trials and author of Brokerage Fraud.”


Douglas J. Schulz, Forbes:

“If you don’t have a contract, there’s no fiduciary relationship, and you’d have a much bigger up-hill battle,” says Douglas Schulz, co-author of Brokerage Fraud.


Douglas J. Schulz, Money Magazine:

“The settlement represents pennies on the dollar compared to the $7 trillion that U.S. stock markets have lost from their peak,” said Douglas Schulz, of Colorado Springs, a former stock broker who now serves as an expert witness in securities fraud cases. “The investigations, which are ongoing, should make it easier for thousands of investors seeking restitution for the losses they suffered,” said Schulz, co-author of “Brokerage Fraud: What Wall Street Doesn’t Want You To Know.”


Douglas J. Schulz, Denver Post:

Schulz, author of Brokerage Fraud, said, “Brokerage firms have lost credibility in light of wide-spread media reports of fraudulent and reckless conduct and that has heightened the skepticism of arbitrators.”


Douglas J. Schulz, Lawyers Weekly USA:

“They’re (Internet brokerage firms) learning at the public’s expense and that’s not right”, says securities expert Douglas J. Schulz, from Invest Securities Consulting, Inc. of Westcliffe, Colorado, who has accounts at six different firms.


Douglas J. Schulz, Business Weekly:

“Investors often have a better chance of winning a margin dispute if the firm made some additional representation or misrepresentation, such as incorrectly telling the customer that there is no margin call or giving the customer to meet a margin call and then liquidating the stock before the deadline.”


Douglas J. Schulz, Wall Street Journal:

“The marketing campaigns by these internet brokers encouraged novice investors, who had no business trading securities, to short-term trade stocks, and in many instances ended up losing a major of their net worth.”


Douglas J. Schulz, Wall Street Journal:

“What was the basis for recommending the stock? What materials did you rely on?”


Registered Representatives:

“They weren’t even asleep at the wheel”, charges one Prudential critic. “They just took the wheel off and through it overboard.”


Douglas J. Schulz, 
The American Lawyer:

“If a big guy with lots of money and a good education can win, then the opportunity for justice is strengthened for the small guy.”


Douglas J. Schulz, The Sun Sentinel, Florida:

“Should you cut your losses and bail out? First, take a look at the partnership’s quarterly and annual reports. If a partnership’s distributions exceeds its income, all it’s doing is paying out capital and you’re probably better off getting out.”


Douglas J. Schulz, Kiplinger’s Personal Financial Magazine:

“The chairman of the panel halted the proceedings and ordered the investor into the hallway—without his lawyer—to try to reach a settlement with the brokerage representative…”


Douglas J. Schulz, Money Magazine:

“They’re thumbing their noses at the SEC.”


Douglas J. Schulz, Business Week:

“For Schwab to be portraying itself as totally conflict free is somewhat misleading—they have many of the same conflicts as the big houses.”


Douglas J. Schulz, Institutional Investor:

“If you don’t see why I’ve called certain investments highly risky, I’ll explain. For example, suppose a broker sold you a bond by telling you his firm has cornered the market in that issue. Sound interesting? It might mean only that the issue is thinly traded and hard to unload except on gullible customers.”


Douglas J. Schulz, Medical Economics:

“That the payment system was not disclosed is a whole new area of fraud,” said Douglas Schulz, a securities expert who has participated in investigations into the firm’s sale of limited partnerships in the late 1980’s and who has testified on behalf of plaintiffs in the case. “The big question now is will the U.S. Attorney General or the SEC open the books back up on Prudential.”


Douglas J. Schulz, The New York Times:

“Just because you’re rich, doesn’t mean that you know anything about investment markets,” said Douglas Schultz, head of Invest Securities Consulting, Inc. in Dallas, who testified as an expert witness in the case. “The securities regulations are not socialistic, they apply regardless of your wealth.”


Douglas J. Schulz, The New York Times: 
($2.6 million dollar award)

“The message being sent by this and other awards is: You can’t abuse investors’ accounts and then use as a defense the fact that they are wealthy.” 









CLIENT SERVICES

Invest Securities Consulting, Inc. through its President and securities expert witness Douglas J. Schulz offers numerous services relating to investments such as investment fraud, mutual fund and hedge fund mismanagement and malfeasance, investment advisor and stockbroker violations and disputes, improper sales of limited partnerships and private placements, self-dealing and front running by investment managers, inadequate due diligence by investment advisers and fund managers, malignment of publicly traded companies, portfolio and fund management comparison and analysis, due diligence investigation of fund managers/hedge funds/stockbrokers and investment advisors, breach of securities regulations and industry norms, compliance and supervisory violations and lapses.  

Read what a few of our clients have said about working with Mr. Schulz

May 2015

"Douglas, You were fantastic yesterday.  As I said at lunch today, you cannot teach or learn the instincts and sense of timing you have in testifying.  It is a God given gift.  You either have it or you don't, and you do. Safe travels home."

Received from a prominent Phoenix securities attorney

"Let me be perfectly clear; you are one of (if not the) best and most helpful expert witnesses that I have ever had the pleasureof working with . . ."

Mark R. Bumgartner, Esq.

Pender & Coward, P.C.

August 21, 2014

". . . Once again, you have proven yourself to be the consummate securities expert.     . . . The ability to make complex concepts understandable to the clients and to the finder of fact is a critical skill that you possess and demonstrate with aplomb.  You are an invaluable asset to have in both hearing/trial preparation and at the hearing/trial itself.    . . . Your knowledge of the securities regulations is masterful."

Christopher D. Lonn

Margrave Celmins


 July 2015

Doug,

"Thank you so much for the help and professionalism you brought to my defense. After the very successful result which you helped to bring about..it is clear in hindsight as well as at the time, the tremendous poise your professionalism and experience brought to bare.    I wish you continued success and am grateful your skill and professionalism was available to my defense."

All the best,  TP 

  Read More References 

Brokerage Fraud book reviewed in Business Week Magazine

Douglas J. Schulz has co-authored a book with Tracy Pride Stoneman, distinguished securities lawyer (brokeragefraud.com) about the brokerage industry. Douglas' book, Brokerage Fraud, was reviewed in the February 11, 2002 issue of Business Week Magazine! 

" The imperative to be a skeptical investor is a lesson most of us learn the hard way. That's why you might do a favor for any friends who still use a stockbroker by giving them Brokerage Fraud: What Wall Street Doesn't Want You to Know (Dearborn, $24.95). The authors, Tracy Pride Stoneman, a lawyer specializing in securities-fraud cases, and Douglas Schulz, a former broker at Merrill Lynch who now acts as an expert witness in arbitrations, battle stockbrokers for a living.    . . . they make enough of a case to get even very trusting investors to (wisely) think thrice about any broker's advice".


Mr. Schulz – Featured Speaker at the Wharton School of Business

Mr. Schulz was a featured speaker at a November 2010 Wharton School of Business, FINRA Institute's CRCP, Certified Regulatory Compliance Program. The program and dinner was to celebrate the 10 year anniversary of the FINRA/Wharton program and honor some of their more distinguished graduates. Mr. Schulz spoke on how securities experts work with compliance professionals and regulators. He was one of the very first graduates of the CRCP program, graduating in September 2001.                                                                    

 For more information, click here

Mr. Schulz - Featured speaker at the Delaware Investment Education Conference 2005

Mr. Schulz was one of the nationally known speakers along with such famous investment executives such as John Bogle of Vanguard. The conference was sponsored by the Delaware Securities Commission to help educate investors. Additionally, Mr. Schulz conducted a course for the Delaware Securities Commission’s regulatory investment team.

For more information, click here

Douglas Schulz appears in the movie, Navigating the Fog of Investing!!  He is interviewed along with other luminaries, such as John Bogle, Arthur Levitt, and Jeremy Siegel. 

Cick the image below to view Douglas Schulz's  interview in this important documentary.           


 Click the image below to view the bios of those involved in this documentary.


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