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Invest Securities Consulting in The News

Douglas J. Schulz, Financial Planning, January 2, 2024

According to FINRA, LPL failed to ensure that its representatives were properly logging their business dealings, resulting in 830,000 transactions not being adequately recorded between January 2012 and August 2019. The firm also stood accused of failing to collect clients' profile information — data needed to gauge whether any possible investment recommendation is actually suitable — for $2 million trades. Douglas Schulz, a securities lawyer and the president of Invest Securities Consulting, said the fines seem vastly disproportionate to FINRA’s allegations against LPL. It would almost be easier, Schulz said, to list the rules that LPL wasn’t accused of breaking rather than those that it was. “If the ultimate goal is the protection of investors, I tend to go to the top, and the top is the regulators”; Schulz said. “And when I see this much wrongdoing for this many years before someone says anything, then I’m very critical of FINRA.”

Douglas J. Schulz, Financial Planning, July 20, 2023

One of the cases highlights how financial exploitation of older Americans amounts to as much as $28 billion each year. But they both underscore why investors should be skeptical of any vehicle requiring them to move assets off platforms subjected to regular scrutiny by firms and regulators to outside entities controlled by an individual broker, according to fraud expert Douglas Schulz of Invest Securities Consulting. A “day and age of widespread fraud” requires constant diligence, whether investing online or with a financial advisor, Schulz said. “I would say it's as bad today as I’ve ever seen it. The scamsters are very good. They're very smart,” Schulz said in an interview. “It’s rampant, and the regulators — you can't rely on them.” “They don't just fleece one person, they take down a bunch,” Schulz said. “You catch them, and they don't have any money. The net result is horrible. Yes, you can try to sue the advisory firm and the brokerage firm and we win maybe half those cases. But we don't win them all because the argument is, ‘Well the broker hid it from us, too.’”

Douglas J. Schulz, Financial Planning, June 29, 2023

Douglas Schulz, the president of Invest Securities Consulting, said the case shows how easy it is for sales representatives to move on from a firm that that’s under regulatory scrutiny. “Here we go again”, he said. “You catch them, and you disclose the entity they worked for. But you don’t really do anything about the people who were in control. So what’s the point? What did you accomplish?”

Douglas J. Schulz, Financial Planning, May 11, 2023

Douglas Schulz, the president of Invest Securities Consulting and a longtime FINRA arbitrator, said DeGregorio, given his past, should have caught regulators attention earlier. “It has always been a given that a broker who switched broker-dealers regularly, in two years or less, that is an absolute red flag”, Schulz said. “And the firms hiring a guy who by definition had a checkered past should have been asked: Why are you hiring someone who switches firms more often than I change my underwear?

Douglas J. Schulz, Financial Planning, March 22, 2023

Regulators and law enforcement authorities have “made abuse of seniors/elders major priority” in recent years, said fraud expert Douglas Schulz of Invest Securities Consulting in Westcliffe, Colorado. “It is a priority, it should be a priority and there are numerous bad actors who target seniors.”

Douglas J. Schulz, The Wall Street Journal

In the Wall Street Journal both Mr. Manson (arbitration scheduled for late October 2018) and Mr. Dielman are cases where I am/was the Claimant’s securities expert. I’m especially proud of the Dielman case (Mr. Dielman and his wife, in addition to being wonderful people, Chris is one of the more famous lineman in NFL history) because we received a $1.1 million award and I was the sole expert for the Claimants where the Respondents had 3 experts! Additionally, I think you will agree that the $1.1 million award is quite an accomplishment considering that my client made $3.7 million in his account.


Douglas J. Schulz, Financial Planning, 2021

“You find the products that pay the highest commissions and you'll find the products where most of the abuses occur,” said fraud expert Douglas Schulz of Invest Securities Consulting. UIT’s have "always been a problem," he said, because clients have trouble with all the different types of fees collected upfront, during the investment and at the end. “It's almost impossible for them to really figure out and know what are the charges and potential charges,” Schulz said.


Douglas J. Schulz, Wall Street Journal

“Being an accredited investor does not today make you wealthy, and it absolutely does not make you sophisticated, said Douglas Schulz, a former investment adviser who testifies in arbitrations for investors."


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, Albuquerque Journal

Rosenstiel’s securities expert Douglas Schulz concluded that Decades had “neither the expertise or experience in how to deal with diversifying and hedging” such a large concentrated asset. For Decades to say there are no damages to the estate, “is like trying to take credit for the sun coming up in the morning because you happen to be on your porch watching,” he wrote in a report.


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 The Book 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 time 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?”


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.”


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.”


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The authors have taken the rules and regulations of he brokerage industry and put them in laymen s terms.
Professor William C. TysonThe 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. MullenVice President UBS PaineWebber
Tracy Stoneman and Douglas Schulz certainly know what Wall Street brokerage firms wish you didn't.
Evan CooperEditor-in-Chief, On Wall Street, Co-Author
This book can save you thousands of dollars and loads of headaches!
Jordan E. Goodmanauthor 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 . ."
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Securities Expert Witness | FINRA Arbitration Expert Witness

Where Expertise and Experience Meet!

Welcome to the home page of Douglas Schulz, a nationally recognized securities expert witness and the President of Invest Securities Consulting, Inc. Mr. Schulz is a Certified Regulatory Compliance Professional (CRCP) who has been retained in over 1,175 securities related matters. Mr. Schulz has testified in over 650 FINRA Arbitrations and civil cases regarding investment and brokerage disputes that have resulted in arbitration awards and settlements totaling over $383 million dollars.

FINRA Securities Arbitration Expert Witness and Consultant

  • Confidentiality
  • Impartiality
  • Professionalism

Douglas J. Schulz, CRCP

Invest Securities Consulting , Inc.
Proven Quality Over Time
Today’s securities industry and securities fraud have become progressively multifaceted and complex. The new generation of securities violations, schemes, and securities fraud truly necessitate expert testimony. A securities expert witness’s testimony has become vital in reaching a successful resolution in securities arbitration today.

Client Services

A client-focused and solution-based company with a proven record, Invest Securities Consulting, Inc. provides clients with a full range of services relating to the securities industry

  • Securities Expert Witness
  • FINRA Arbitration Expert Witness Testimony
  • Fund Management Comparison & Analysis
  • Due Diligence Investigation
  • Litigation Support & Consultation
  • Portfolio Analysis
  • Portfolio Fees & Cost Evaluation
  • Discovery Review & Recommendations
  • Evaluation of Investment Strategies
  • Damage Calculations & Loss Analysis

Areas of expertise

  • FINRA & SEC Regulations
  • Breach of Fiduciary Duty
  • Securities Fraud Investigations
  • Mutual Fund & Hedge Fund Mismanagement
  • Self-Dealing & Front-Running
  • Suitability
  • Securities Fraud
  • Unauthorized Trading
  • Churning
  • Options, Stocks & Bonds
  • Compliance Violations
  • Supervisor of Registered Representatives
  • Supervisory Violations and Lapses
  • Due Diligence
  • Concentration - Lack of Diversification
  • Order Failure
  • Illegal Discretionary Trading
  • FINRA Arbitrations
  • Securities Arbitrations
  • Broker Standard of Care
  • Broker/Brokerage Firm Malpractice or Malfeasance
  • Stockbroker Violations
  • Damage Calculations & Loss Analysis
  • Damages & Punitive Damage Analysis
  • Option Straddles and Strangles
  • Compex Option Hedging and Shorting Services
  • Inconsistencies in Trading Activities
  • Breach of Securities Regulations
  • Breach of Broker Industry Norms & Standards
  • Improper Sales of Limited Partnerships and Private Placements
  • Breach of Fiduciary Duty
  • Compliance Obligations for Registered Investment Advisors, RIAs
  • investment Fraud
  • Margin Calls & Liquidations
  • Fee & Commission Gouging
  • Cryptocurrencies
  • Third-Party Power of Attorney Accounts

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

November 2019
We could not have obtained the results we achieved without you as part of our team. And your pre-trial assistance in crafting cross examination of their witness and experts resulted in eliciting much testimony helpful to us and damaging to them. On damages, your analysis of our clients' accounts, through both your reports and your testimony, was instrumental in the panel's decision to award the compensatory damages. . . . you simplified and articulately explained our damage calculation in terms the arbitration panel could easily understand. That was clear when witnessing the lengthy back and forth between you and one of the arbitrators on the theory and measure of damages. Perhaps the most compelling proof of the value of your assistance was the award of your expert witness fee of $140,000. We both know that is a rare event in FINRA arbitration. Very truly yours,

Read full letter 

Frank “Kim” Breese, IIIBREESE LAW OFFICE, PLLC
December 2018
. . . your testimony to the Panel was well-considered and, thus, helpful to it in its efforts to understand this case, what went wrong at the broker-dealer, and what should have been done by the firm to protect my clients and comply with its regulatory obligations. I just wanted to let you know that I appreciated the time and attention you gave to the engagement from start through to the end as that had a positive impact on the value of your testimony at the hearings. Among other things, the fact that the Panel Chair asked you candidly for your assessment of the claimant’s relative naivety when none of the parties or counsel had touched on that issue directly, and the fact that the opposing party ordered copies of your book, indicated to me that your testimony was impactful. Best personal regards,
Paul Arizona Lawyer
September 2017
. . . Doug created several excellent damages models. These models were professional and concise and, most important, Doug had the knack of explaining them in simple and compelling terms. . . . The other side was represented by very accomplished attorneys, and hired competent and expensive experts. However, even with these resources in my view they were never able to effectively undercut Doug's work.

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Guardianship legal battle ends in secrecy - Albuquerque Journal (08/27/2017)

David A. Garcia, LLCAlbuquerque, NM
July 2016
"My firm has worked with Douglas Schulz on two significant securities cases with three different clients. We enjoyed excellent results in both cases, in large part due to Mr. Schulz. His knowledge of securities regulations and the securities industry extends far beyond that of the most . . . Mr. Schulz also prepares extremely thorough, well-written, damages analyses and reports that always stand up to scrutiny. Mr. Schulz's testifying skills are equally impressive. . .
Michigan Lawyer
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 pleasure of 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."
Arizona Attorney
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
Merrill Lynch Broker
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Featured

  • Brokerage Fraud book reviewed in Business Week Magazine

Douglas J. Schulz has co-authored a book with Tracy Pride Stoneman, distinguished securities lawyer about the brokerage industry. The book, 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, 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”.

  • 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. His topic, 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.
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  • Featured speaker at the Delaware Investment Education Conference 2005
Schulz, a 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.
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