Former Wells Fargo Rep Receives 128-Count Indictment for Investment Fraud
John Gregory Schmidt, owner of Schmidt Investment Strategies Group in Washington Township, Ohio was indicted in Montgomery County on 128 counts for conducting a million-dollar Ponzi scheme, while employed by Wells Fargo Advisors Financial.
John Gregory Schmidt, a former Wells Fargo Advisors Financial Network registered representative, has been indicted on 128 counts for conducting a million-dollar Ponzi scheme that transpired between 2003 and 2017. Most of the customers were reportedly elderly with little to no financial expertise.
Schmidt, the owner of Schmidt Investment Strategies Group in Washington Township, Ohio, spent nearly 11 years at Wells Fargo Advisors Financial and was previously affiliated with Nicolaus & Company from 2002 until 2006.
In typical Ponzi fashion, Schmidt allegedly stole money from his clients’ investment accounts in order to cover for stolen money in other investors’ accounts. He is also accused of making unauthorized sales and withdrawals from customer accounts, secretly transferring funds using fraudulent letters of authorization, and issuing fake account statements. Schmidt received more than $230,000 in brokerage commissions from the transactions.
Prosecuting attorney, Mat Heck, Jr. stated, “For years, this defendant defrauded a number of investors, many of them elderly or with dementia. He had to keep stealing from more investors in order to cover for the thefts from other investors.”
The Montgomery County Grand Jury indicted Schmidt on 124 counts of forgery, two counts of theft from an elderly or disabled adult in excess of $150,000, one count of telecommunications fraud between $150,000-1,000,000, and one count of fraud or deceit by an investment advisor of more than $150,000.
Irregularities found by the Ohio Department of Insurance triggered an investigation that was conducted with the Ohio Department of Commerce.
A warrant has been issued for Schmidt’s arrest. He is scheduled to be arraigned on Thursday, January 10, 2019. In addition, a federal civil lawsuit has been filed by the Securities and Exchange Commission.
