Landolt’s Bret Schaefer Involved in Settled Disputes

Bret Schaefer (CRD# 2577117[1]), a broker registered with Landolt Securities, has been involved in investor disputes that settled for more than $500,000 in total. These disputes can be found in his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on July 25, 2023. The financial professional is based in Antioch, Illinois.

Disputes Alleged Misrepresentation, Unauthorized Trading

Between 2021 and 2023, three investors or parties of investors filed disputes involving Mr. Schaefer. The claims detailed allegations of unsuitable investment recommendations, unauthorized trading, and misrepresentation of material facts relating to the products he recommended, which included a variable annuity and alternative investments. His former member firm settled the disputes for a total of $593,114.

Schaefer Denied Allegations

Mr. Schaefer published a “Broker Comment” defending against the allegations in a June 2021 unauthorized trading and suitability dispute that settled for $510,000. “I did not enter the trades for the client’s account which are the subject of the complaint,” he claimed in this statement. “After investigation, Woodbury Financial concluded that I (Bret Schaefer) did not make those trades in the client’s account.”

Understanding FINRA Rule 3260

FINRA Rule 3260[2] prohibits brokers like Mr. Schaefer from engaging in discretionary trading without first seeking and receiving written authorization from their clients, as well as approval from their member firm. Discretion refers to the execution of securities transactions without prior consultation with the customer — that is, at the broker’s own discretion. In other words, this rule prevents unauthorized transactions.

Industry Rules Forbid Misrepresentation

Misrepresentation describes instances when brokers give their clients false or misleading information regarding an investment or strategy. The misrepresentation of material information — that is, information that poses a significant consideration to investors weighing an investment — generally violates FINRA Rule 2020[3]. This rule specifies that brokers may not use “any manipulative, deceptive or other fraudulent device or contrivance” in the course of their securities business. Misrepresentations may lead investors to make unsuitable[4] investments, the recommendation of which is prohibited by FINRA Rule 2111.

Bret Schaefer Based in Antioch, Illinois

Schaefer launched his career as a broker in 1995, when he joined IDS Life Insurance Company and American Express Financial Advisors. In the years since, he worked at firms like Citigroup Global Markets and Woodbury Financial Services. He has been registered as a broker with Landolt Securities since 2021, where he is registered with the firm’s office in Antioch, Illinois. With 27 years of experience as a broker, he has completed two state securities law exams, one general industry/products exam, and one principal/supervisory exam.

Investment Losses?

Contact MDF Law About Your Investment Losses MDF Law has recovered tens of millions in lost investment funds for the victims of broker fraud through FINRA complaints[5]. If you have concerns about investments you made with Bret Schaefer, contact our team to discuss your options. Our experienced attorneys take cases on a contingency basis — you only pay if you win — and offer free consultations across the US. Call 800-767-8040 to speak with a lawyer today.