In the investment arena, Mr. Schulz started investing in stocks when he was in the 6th grade and through today he remains very active in the securities markets, including online and Internet trading. The markets are constantly changing, even more so in the last few years, and Mr. Schulz is on top of all of these changes. Because Mr. Schulz is active in investing and in his money management business, he maintains his expertise in these areas separate and apart from his research and work as a securities expert. Other experts have not been active in the securities markets for many years. Investments and the securities markets have been a part of Mr. Schulz's entire life and remain the major part of his work and personal time.

As a professional, Mr. Schulz has been in the securities industry for over 20 years (click here to view and print Mr. Schulz's resume). Even time spent outside of the securities industry has been in the legal and investigative arena. Mr. Schulz's Administration of Justice degree from American University was somewhere between a criminology degree and a pre-law degree. Some of his earlier career jobs for the State of New Mexico and for a large food chain were in the investigative arena. This education and experience, combined with Mr. Schulz's many years of being very actively involved in the securities litigation market, makes for an appealing background in this area. 

Investment Advisor Services
Invest Securities Consulting, Inc. P.C. as a registered investment advisory firm (RIA) offers portfolio management on a non-discretionary basis for individuals and various entities. A large portion of this work entails what is referred to as the "second opinion" business. Many of Mr. Schulz's clients have and maintain their current stockbrokers or money managers and merely hire Mr. Schulz on an annual and bi-annual basis to review the portfolio. This review and report can be specifically tailored to the needs and the interests of the investor. The standard issues addressed by Mr. Schulz in the reports are the return/performance of the account - standing alone and on a comparative analysis to various indices; a cost report which includes an analysis of all costs, fees and charges, calculated on both a percentage basis and comparative basis; a risk analysis that highlights the individual risk of specific holdings and the portfolio as a whole, including various trading patterns and strategies. As Mr. Schulz is so often quoted as saying, "In any investment an individual makes, figuring out the conflicts of interest is always one of the most important elements." With this in mind, one of the great advantages of Mr. Schulz's analysis and report is that because of the inherent conflict of interest built into the brokerage and money management business, Mr. Schulz's analysis discloses items that their broker and portfolio manager has failed to disclose.

Mr. Schulz's analyses of portfolios can be at the request of a client who believe there may be some improper activity in his or her account and simply wants to know if there have been any rules or regulations violated. Alternatively, his analysis can have nothing to do with litigation or violations and can be purely from an investment advisory standpoint or some combination thereof. This website is not to be construed as a solicitation for investment advisory business. Any request for specific investment advisory business should be directed to Mr. Schulz personally, and a current copy of his ADV Form, Part II, should be requested.

DOUGLAS J. SCHULZ CRCP
Invest Securities Consulting, P.C.

Email: schulz@securitiesexpert.com Fax (214) 853-9300 Summer Address: 301 Snowcrest Westcliffe, CO 81252 Tel. (719) 783-3230

Website: www.securitiesexpert.com Cell (719) 651-1916 Winter Address: 73250 Ironwood Street Palm Desert, CA 92260 Tel. (760) 776-8873

ARBITRATION & LITIGATION
Mr. Schulz is a securities consultant and expert witness working for both claimants and the brokerage industry. He testifies regularly as an expert in federal and state courts, as well as in arbitrations before the National Association of Securities Dealers (NASD), the New York Stock Exchange (NYSE), and the American Arbitration Association (AAA). He is an NASD and NYSE Arbitrator. Mr. Schulz has been retained in approximately 1,000 cases on rules, laws and regulations of the securities industry; norms and guidelines of brokerage firms; suitability of investments and investment strategies; order execution; evaluation of various investments; damage theories; supervision and compliance. Mr. Schulz has testified approximately 500 times and assisted in cases that have resulted in arbitration awards or settlements totaling over 335 million dollars, including several significant punitive damage awards.

Mr. Schulz’s research in preparation for arbitration includes analysis of investments sold to customers; assessment of investment suitability; determination as to what securities rules and regulations have been violated; creation of exhibits like schedule of trades, turnover, cost and commission analysis, damage calculations and lost opportunities. His involvement in the discovery process includes drafting discovery requests and testifying in preliminary hearings concerning requested documents. Mr. Schulz also assists in securities mediation.

Invest Securities Consulting P.C. (Invest) can produce comprehensive and demonstrative spreadsheet analysis exhibits. References and examples of spreadsheets are furnished upon request.

MONEY MANAGEMENT
Mr. Schulz’s company Invest is based in Westcliffe, Colorado. Mr. Schulz, President, is a Registered Investment Advisor (RIA). He was previously licensed with the Securities and Exchange Commission (SEC) and is currently licensed in various states as an RIA. In this capacity, he offers professional money management and financial or portfolio investment advice. Through 1998, Invest managed up to 25 million dollars. Mr. Schulz also analyzes investments, investment strategies, and performance results and performs due diligence and investigations for merchant bankers, investment bankers, and the brokerage industry.

EXPERIENCE
Mr. Schulz assisted the New York U.S. Attorney General’s office and the SEC in connection with their investigation of Prudential Securities’ nationwide securities fraud involving the sale of limited partnerships to investors from 1980 through 1992.

In 1988, Mr. Schulz joined Johnson Trading, an introducing brokerage firm, as a partner and operations manager. His duties included operational management of commodity hedging and trading in agricultural and cattle markets. He also was responsible for new business development, marketing, training, staff hiring and payroll. Mr. Schulz left the company to enter his current line of work of securities consulting.

From 1983 to 1988, Mr. Schulz was a Vice-President with Bear Stearns in its Dallas, Texas office. As a retail broker, Mr. Schulz specialized in stock trading, option strategies, risk arbitrage, commodities, and fund management. He was an active trader and one of the top producers in an office of 40 brokers.

Mr. Schulz worked for Merrill Lynch in the Dallas, Texas branch, where he participated in a five-month extensive training program. Mr. Schulz ranked third in a nationwide class of 149 Merrill Lynch brokers after one year in production. He was voted “Rookie of the Year” in 1982 and was a guest lecturer in the New York Training Department. As a registered representative, Mr. Schulz’s business consisted of trading in stocks, bonds, and options, along with marketing the full range of investments offered by Merrill Lynch. He also worked closely with Corporate Financial Services and Retirement Services.

Mr. Schulz entered the securities industry in 1981. He first worked for Investors Diversified Services (IDS), where he received extensive training. He was a licensed agent in life insurance, variable annuities, and mutual funds. His duties included cold calling, prospecting, financial planning, and selling various mutual funds and life insurance products.

LICENSES, COMPLIANCE & ARBITRATOR TRAINING

EDUCATION
Mr. Schulz has a Bachelor of Science in the Administration of Justice from American University in Washington D. C., where he graduated Magna Cum Laude in 1975. He is a member of Phi Kappa Phi Honor Society.

PUBLICATIONS/SPEECHES

Unauthorized Trading & Mismarking Order Tickets – How Regulators Can Detect These Violations. NASAA Winter Enforcement Conference; La Quinta, CA January 2005

How Delaware Securities Investigators Can Spot Special Violations at the Branch Level. Delaware Department of Justice Securities Division; Wilmington, DE March 2005

How Investors Can Spot Abuses in Their Brokerage Accounts. 2005 Delaware Investor Education Conference Keynote Address; Wilmington, DE March 2005

Auditing Brokerage Branch Offices – Red Flags, Supervision and Securities Violations. Slide show and presentation to the NASD Enfocement Department – Investor Protection; Washington D.C. January 2004. This was a lecture for the training department for NASD investigators.

How a Branch Office Manager Can Fail to Supervise His Branch Properly. California
Mid-Year Securities Arbitration Update - PIABA; Los Angeles, CA March 2005

Brokerage Fraud – What Wall Street Doesn’t Want You to Know. Co-author, Dearborn Trade; 2002. The book addresses the rules and regulations of the securities industry and puts them in layman's terms for the investing public. The book covers such subjects as the top abuses in the industry, the regulators, how to choose a stockbroker and how investors can navigate the investment markets.

Flat Fees or Fat Fees. Practicing Law Institute (PLI) Securities Arbitration 2004; PIABA Bar Journal; Fall 2003. The article discusses flat fee and wrap fee accounts of brokerages and why many times they are not in the best interest of investors.

Margin Abuses & Concentration — The Failure to Diversify. Publication and Presentation at the Mass Torts Made Perfect Securities Litigation Conference; Chicago IL, June 2003.

How to Keep Yourself Out of Arbitration. Presentation to the Colorado Springs Merrill Lynch Branch office; 2002

Concentration — Too Much of a Good Thing. PIABA Bar Journal Vol. 9 No.2 Summer 2002 Co-author. The article discusses the various issues surrounding concentration within a portfolio and lack of diversification of investments by stockbrokers.

How to Get the Most Out of Your Brokerage Account. Presentation to the American Board of Trial Advocates; Mauna Kea Beach Hotel, Hawaii November, 2001.

Unauthorized Trading, Time and Price Discretion & the Mismarking of Order Tickets. Practicing Law Institute (PLI) Securities Arbitration 2001, Publication and Presentation at seminar August 2001. The article addresses the regulations governing these three areas and how regulators, compliance individuals, lawyers, and arbitration panels can determine if violations have taken place. The article also suggests changes which are needed in the regulation of these infractions.

No Duty — Does Suitability Apply to Internet Brokerage Firms? Publication and Presentation at Public Investor's Arbitration Bar Association, PIABA; October 2000. The article addresses the position of Internet firms that they have no duties as it relates to "suitability" and the "Know Your Customer Rule". E*Trade is discussed specifically.

Internet Market Orders Can Be Dangerous. Published in The Colorado Springs Business Journal August 1999. The article discusses market and limit orders in volatile markets.

Problems with Internet Trading. Published In The Colorado Springs Business Journal June 1999. The article discusses many of the problems investors have trading with on-line brokerage firms.

How Internet Trading Might Affect Your Business. Published in Practitioners Publishing Company's Financial Advisory Services Bulletin, February 2000. The article discusses the nuances of the Internet trading markets and how they will affect the business of money managers and investment advisors.

Internet Trading — Take a Walk on the Wild Side. Published in PLI's Securities Arbitration 1999. The article addresses the booming market in Internet trading and the pitfalls and conflicts in trading at on-line brokerage firms, as well as the liability.

The New NASD Arbitrator Selection System - NLSS. Published in the Securities Arbitration Commentator, April 1999 Volume 10-6. The NLSS was a major change in the NASD arbitrator selection system. The article explains some of the finer points of NLSS and discusses the strategies, benefits and downsides of the new system.

Risk Tolerance of Investors. Published in Guide to Investment Advisory Services, Practitioners Publishing Company, 1999. Evaluating the risk tolerance of an investor is an essential part of an investment advisor’s practice. The article provides a framework to allow advisors to conquer such a historically complex task, and thereby make proper recommendations to their clients.

Investors Level of Knowledge. Published in Guide to Investment Advisory Services, Practitioners Publishing Company, 1999. The article and survey are tools designed to assist investment advisors to evaluate the investment knowledge of their clients.

When Is An Order An Order? Unauthorized Trading by Securities Brokers. Published in PLI's Securities Arbitration, July 1994. The article covers the discussions that must take place between a broker and the client, the order process, discretionary trading, and the arbitration of unauthorized trading claims.

Damages in Limited Partnership Cases. Published and presented at the PIABA Second Annual Meeting, October 1993. The article discusses the proper methods to calculate damages and lost opportunities, as well as the accompanying support documents.

Arbitration of Limited Partnership Cases. Published in the Securities Arbitration Commentator, February 1992. The article addresses the marketing of limited partnerships in the 1980s and the arbitration of securities claims.

The Use of Expert Witnesses in Securities Arbitration. Published in Securities Arbitration - Evaluation, Preparation, Presentation April 1992. Mr. Schulz has also spoken on this subject at a number of national and regional securities seminars.

Forced Arbitration - Perfect Justice? Discovery in Arbitration. Published in the Securities Arbitration Commentator, November 1990. The article explores the problems attendant to discovery in arbitration and offers suggestions for change and for working within the system.

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Douglas J. Schulz CRCP, RIA
Invest Securities Consulting, Inc. P.C.
301 Snowcrest
Westcliffe, Colorado 81252
Phone: 719-783-3230
Fax: 719-783-0343
Email: schulz@securitiesexpert.com

© Invest Securities Consulting, Inc. P.C.
Last Updated: April 6, 2005

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