FINRA suspends ex-JPMorgan broker for alleged $171K check-kiting scheme
Another registered rep has gotten into trouble for trying to artificially boost funds in their checking accounts with worthless personal checks.
Todd Schoenwalder, a former broker with JPMorgan Securities in Milwaukee, was suspended last week for 15 months and fined $15,000 for an alleged check-kiting scheme, according to a settlement he reached with FINRA.
The regulator claimed Schoenwalder deposited 11 checks totaling $171,700 into his two Chase Bank checking accounts, knowing that the checks did not have sufficient funds to cover them. The checks were drawn from an account he owned at another bank, FINRA said.
FINRA also chastised Schoenwalder for allegedly accepting and failing to disclose a $50,000 cash gift from a brokerage customer in violation of JPMorgan's policies prohibiting the acceptance of customer gifts above $100.
Schoenwalder could not be reached for comment. In his settlement with FINRA, Schoenwalder neither admitted nor denied the charges but consented to an entry of FINRA's findings.
Schoenwalder worked for JPMorgan from May 2013 to May 2016, when he was discharged for the alleged transgressions, according to BrokerCheck records. He had previously worked for the brokerage unit of Associated Bank for almost seven years.
Meredith Kender, a spokeswoman for Chase Wealth Management, declined to comment on the matter.
Schoenwalder joins another former JPMorgan rep who was suspended this year for engaging in an alleged check-kiting scheme. Jon DeBow was suspended in January for 18 months and fined $10,000 for purportedly kiting 38 checks totaling more than $46,000.