WARNING! Impending Investigation–JEFFREY SCHRADER and LIBERTY STATE BENEFITS of PENNSYLVANIA, INC.
Jeffrey Schrader and Liberty State Benefits of Pennsylvania Inc.
We are currently investigating allegations made against Jeffrey Dean Schrader of Philadelphia, Pennsylvania. Jeffrey Schrader was barred from selling securities by the New Jersey Bureau of Securities on August 11, 2014. Schrader was alleged to have sold notes of a company called Liberty State Benefits of Pennsylvania Inc. (or LSBPI). The money raised through the LSBPI notes were alleged to have been part of a Ponzi scheme perpetrated by Michael Kwansik.
Jeffrey Schrader was alleged to have sold the notes to his clients from April 2009 to December 2009. From March 2009 to February 2014, Schrader was a registered representative and financial advisor affiliated with Western International Securities, a securities broker-dealer based in Pasadena, California. Schrader also operated Schrader Wealth Management.
This is not the first time that Schrader has been in trouble. Jeffrey Schrader was fired by Merrill Lynch in March 2009 for exercising discretion in customer accounts without authorization, transferring funds between accounts without authorization, and for marking trades as being unsolicited when they were in fact solicited. This should have been a red flag to Western International Securities when it agreed to affiliate with Schrader. Schrader was also barred from the securities industry by FINRA (the Financial Industry Regulatory Authority) in March 2014 for the same conduct with the LSBPI notes.
Broker-dealers like Western International Securities have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives. The broker-dealer firms must also follow up on red flags of potential misconduct. Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers. If you have lost money through Jeffrey Dean Schrader, Liberty State Benefits of Pennsylvania Inc., or Michael Kwansik, and want to hear about ALL legal options, please visit https://www.israelsneuman.com/ or call us at 720-599-3505