Gustave J. Schmidt

11/21/2025: The Department of Enforcement alleges: 1. Respondent Gustave Schmidt failed to disclose compensation related to private placements that he brought to his firm and recommended to his clients, including a fee that exceeded the maximum disclosed amount in the offering documents by fifty percent. Despite this outsized compensation, Schmidt failed to have a reasonable understanding of the risks, rewards, and costs associated with the products he was recommending. 2. Between December 2020 and April 2021, while associated with Investment Network Inc. (“INI”) (CRD 127724), Schmidt recommended that ten of his customers make purchases of interests in pre-initial public offering (“pre-IPO”) companies through various private placement offerings (the “Offerings”), with a total principal value of $437,100. 3. Schmidt made material omissions regarding the compensation that he and his firm would receive in connection with these recommendations and engaged in a course of conduct that deceived investors. The offering ...

Reference 2022074096805data-portal.finra.orgfinra.org