Investors are facing potential losses due to the actions of Colorado Springs-based securities broker Andrew David Schell, according to distressing disclosures on the Financial Industry Regulatory Authority (FINRA) BrokerCheck. Schell’s records in the brokerage industry show his tenure with D.A. Davidson Co. from January 2020 to March 2022 and prior employment with Merrill Lynch Pierce Fenner Smith Incorporated.
Allegations Against Broker Andrew Schell
Alarm bells went off as a client of D.A. Davidson Co. lodged a substantial complaint against Andrew Schell. The client accused Schell’s investment tactics, comprising options and stocks in non-discretionary advisory accounts, of being unsuitable. The client further alleged Schell violated regulations by exercising discretion without necessary authorization. This misconduct supposedly occurred between February 2020 and February 2023. The damages? A whopping $270,052.09. To appease the aggrieved party, D.A. Davidson Co. begrudgingly coughed up a settlement of $129,750.
But wait! There’s more. Another client of D.A. Davidson Co. lodged a formal complaint against Schell. Using the same playbook, Schell allegedly employed an unsuitable stock trading strategy in their non-discretionary advisory account, once again without the required authorization—between June 2020 and February 2022. This questionable conduct supposedly resulted in steep losses of $265,000 for the client. The resolution? D.A. Davidson Co. agreed to a settlement of $175,000, paid on December 22, 2022.
Echoes of Unauthorized Trading
Yet another client cried foul over Schell’s handling of their investments. Schell allegedly overstepped his bounds by exercising discretion in non-discretionary advisory accounts, this time causing the client to bear losses on stocks and options to the tune of $36,801. To hush the client’s accusations, D.A. Davidson Co. cleared this unsettled matter by paying the full claimed damages.
Continued Claims of Misconduct
Schell’s alleged misconduct went on. From February 2020 to February 2022, unauthorized trading became a recurring theme with Schell’s clientele. Another D.A. Davidson Co. client reported incurring damages due to Schell’s exercise of discretion in their non-discretionary advisory account. The losses reported? $32,614. To make amends, a settlement of the same amount was paid to the client by D.A. Davidson Co.
The final blow came from yet another unsatisfied client of D. A. Davidson Co. They contested Schell’s exercise of discretion in non-discretionary advisory accounts without the appropriate written authorization between February 2020 and February 2022. The complaint led to alleged damages of $21,867. D.A. Davidson Co. made things right by settling with the client for the handshake amount of $21,867.
Recovery Road for Affected Investors
If you’re a disgruntled investor bearing the brunt of losses due to untoward actions of Andrew Schell, it’s not the end of the road yet! Legal routes exist to recover your investment losses. It’s relevant to remember that Schell and the brokerage firms he served deny the alleged sales practice violations.
With the mounting complaints and settlements suggesting otherwise, it’s crucial for investors to stay vigilant about who they trust with their hard-earned money. After all, parting from cash can be just as painful as parting from a good friend.