Introducing:

Douglas J. Schulz

Invest Securities Consulting, Inc.

301 Snowcrest
Westcliffe CO, 81252
US

Short Description:

Mr. Schulz is a securities consultant and expert witness working for both claimants and the brokerage industry.  He has testified regularly as an expert in federal and state courts, as well as in arbitrations before the National Association of Securities Dealers (NASD/FINRA), the New York Stock Exchange (NYSE), and the American Arbitration Association (AAA). 

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ARBITRATION & LITIGATION 

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), the National Futures Association (NFA), and the American Arbitration Association (AAA). He is an NASD and NYSE Arbitrator. He has been retained in over 700 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. He has testified in cases that have resulted in arbitration awards or settlements totaling over 50 million dollars, including several significant punitive damage awards.

His 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.

He can produce comprehensive and demonstrative spreadsheet analysis exhibits. Special emphasis is given to trading exhibits and calculation and proof of lost opportunity damages under the Miley theory. References and examples of spreadsheets are furnished upon request.

MONEY MANAGEMENT

His company  is based in Colorado. He is President, and 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, his company managed up to 25 million dollars. He also analyzes investments, investment strategies, and performance results and performs due diligence and investigations for merchant bankers, investment bankers, and the brokerage industry. Additionally, He is Vice-President of another company, a real estate, hotel development and management company.

MEDIATION

He acts as a consultant and participant at mediations of securities cases. He also offers his services as a co-mediator in the securities field.

EXPERIENCE INVESTMENT EXPERIENCE 

He 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, he joined 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 was also responsible for new business development, marketing, training, staff hiring and payroll. He left the company to enter his current line of work of securities consulting.

From 1983 to 1988, He was a Vice-President with Bear Stearns. As a retail broker, He 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.

He worked for Merrill Lynch where he participated in a five-month extensive training program. He 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, His 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.

He 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

  • NASD CRCP Certified Regulatory Compliance Professional
  • NASD - Wharton School of Business (current)
  • NASD General Securities Principal (Series 24) (current)
  • MULTI-STATE RIA Registered Investment Advisor (current)
  • SEC RIA Registered Investment Advisor
  • CME & CBOT General Commodities (Series 3)
  • NASD General Securities Representative (Series 7)
  • NASD Multi-State Registered Securities Representative (Series 63)
  • NASD Investment Company Contracts (Series 6)
  • TEXAS Life and Disability Licensed Agent
  • TEXAS Variable Annuities and Life Insurance Licensed
  • TEXAS Accounting Fraud Training 1989 Austin
  • TEXAS 1993 NASD Arbitrator Training
  • COLORADO 1997 NASD Arbitrator Training
  • COLORADO 1999 NASD Arbitrator Chairperson Training


EDUCATION

He 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

  • “Due Diligence – Securities Applications and Regulatory Requirements 2011” PIABA Bar Journal, Volume 17 No. 4 2010/2011
  • “How Securities Experts Work with Compliance Professionals and Securities Regulators”
  • The Use of Securities Experts in Litigation and Damage Calculations” Cornell Law School, Ithaca, NY, October 2009
  • 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 Enforcement Department – Investor Protection, January 2004 Washington D.C. This was a lecture for the training department for NASD investigators.
  • “Cross Examining Expert Witnesses in Securities Arbitrations” PIABA Annual Conference, Carlsbad California September 2005
  • “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” Practising 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 address 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. (6 volume training manuals)  Evaluating the risk tolerance of an investor is an essential part of an investment advisor’s practice.  This training section of the manuals 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. (6 volume training manuals)   This training section and the 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, 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/Conference, 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.
  • “Your Broker”  Mr. Schulz co-authored a monthly article on the investment and brokerage industry for the The Colorado Springs Business Journal.

 

QUOTED IN: 

CNNFN “The Money Gang”;  WNYW-TV FOX “Good Day New York; KTVK-TV “Good Morning Arizona”;  KFNN-AM Phoenix; WEBFNTV “Ask the Experts”; KNX-AM (CBS) Los Angeles; Yahoo Finance Webcast;  New York 1 Cable “Fortune Business Report” KUOW-FM Seattle, WSAR-AM Providence; WEIM-AM & WBIX-AM Boston; WABJ-AM Toledo; KBEM-FM Minneapolis; WPTT-AM Pittsburgh;  WXRC & WIRC Charlotte; WFTL & WORL Miami; KWIP & WEVL Poughkeepsie; KCMN-FM Colorado Springs, Powernomics Syndicated Radio; WMTR-AM “Your New Jersey Connection” KFAB-AM Omaha; KKTV Colorado Springs; KRDO Colorado Springs; CBS-WBBM Chicago “Noon Business Hour” (3)


APPEARED OR HEARD ON:

CNNFN “The Money Gang”;  WNYW-TV FOX “Good Day New York; KTVK-TV “Good Morning Arizona”;  KFNN-AM Phoenix; WEBFNTV “Ask the Experts”; KNX-AM (CBS) Los Angeles; Yahoo Finance Webcast;  New York 1 Cable “Fortune Business Report” KUOW-FM Seattle, WSAR-AM Providence; WEIM-AM & WBIX-AM Boston; WABJ-AM Toledo; KBEM-FM Minneapolis; WPTT-AM Pittsburgh;  WXRC & WIRC Charlotte; WFTL & WORL Miami; KWIP & WEVL Poughkeepsie; KCMN-FM Colorado Springs, Powernomics Syndicated Radio; WMTR-AM “Your New Jersey Connection” KFAB-AM Omaha; KKTV Colorado Springs; KRDO Colorado Springs; CBS-WBBM Chicago “Noon Business Hour” (3)

References furnished on request.

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