Douglas J. Schulz

Douglas J. Schulz

Invest Securities Consulting Inc.
301 Snowcrest Road
Westcliffe , CO 81252
Office: 719-783-3230
Fax: 214-853-9300

Introduction

I've been hired 1,100 times as a securities expert; given sworn testimony over 630 times. I am a Certified Regulatory Compliance Professional (CRCP) by FINRA/Wharton. Author of "Brokerage Fraud – What Wall Street Doesn't Want You to Know." I am a prolific writer of articles that address the issues of investments/finance, securities regulation, and securities arbitration and litigation.I have traded securities for over 52 years and have been in the securities business professionally for 36 years. I have held numerous licenses and positions during the 36 years. My clients have been awarded damages of over $360 million. My website: schulz@securitiesexpert offers references.

I offer expert opinion and testimony in the following areas: Suitability, compliance, supervision, unauthorized trading, excessive trading, churning, unsuitable investments, investment analysis, comparative damages, order failure, order execution, securities regulations, securities laws norms and standards, FINRA regulations, brokers duties, damages, portfolio analysis, due diligence, brokerage firms policies and procedures, concentration, investment returns, SEC regulations, 1933 securities act, 1934 securities exchange act, 1940 investment advisers act, registered investment advisers, RIA, Fiduciary Duty, naked options, option trading, insider trading, selling away, compliance, supervision, private placements, limited partnerships, damages, margin.


Areas of Expertise

  • Business, Financial & Marketing
  • Finance
  • Financial Planning
  • Fraud Investigation
  • Litigation Finance
  • Lost Profits
  • Securities
  • Stocks & Bonds
  • White Collar Crime

Expert Background

Q: Please list your professional accreditations, degrees, licenses, and certificates granted:
A: FINRA/NASD CRCP Certified Regulatory Compliance Professional
NASD- Wharton School of Business (current)
NASD General Securities Principal (Series 24)
MULTI-STATE RIA Registered Investment Advisor
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
Q: Please list your affiliations or memberships in any professional and/or industry organizations:
A: Phi Kappa Phi Honor Society
Q: Please list any teaching or speaking experience you have had, including subject matter:
A: “Direct Examination of Securities Experts & Cross Examination of Opposing Experts” Michigan State Law School, Lansing Michigan, November 2015

“Swimming Naked When the Tide Goes Out - Naked/Short Options 2013”, PIABA Bar Journal Volume 20, No. 1 Page 75, Fall 2013

“Bonds & Bond Funds – The Next Wall Street Bombshell” April 2013, Invest Securities Consulting, Inc. www.securitiesexpert.com

“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”
Ten Years of CRCPs – Career Success and Advancement, Wharton Business School,
Philadelphia, PA, November 2010

“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:
Wall Street Journal (6), American Lawyer, Money Magazine (2), Newsweek, Forbes,
New York Times (5), BusinessWeek (3), Kiplinger’s Personal Finance (2), Dow Jones, The Street
Chicago Tribune, USA Today (2), Registered Representative, Complinet, The Boston Globe
Investment Advisor, Financial Times (London), Institutional Investor (2), Boardroom Inc., Medical Economics Journal (2
Q: Have any of your accreditations ever been investigated, suspended or removed? (if yes, explain)
A: no
Q: On how many occasions have you been retained as an expert?
A: 1,100 Plus
Q: For what area(s) of expertise have you been retained as an expert?
A: Suitability, compliance, supervision, unauthorized trading, excessive trading, churning, unsuitable investments, investment analysis, comparative damages, order failure, order execution, securities regulations, securities laws norms and standards, FINRA regulations, brokers duties, damages, portfolio analysis, due diligence, brokerage firms policies and procedures, concentration, investment returns, SEC regulations, 1933 securities act, 1934 securities exchange act, 1940 investment advisers act, registered investment advisers, investment advisers, RIA, Fiduciary Duty, naked options, option trading, insider trading, selling away, compliance, supervision, private placements, limited partnerships, damages
Q: In what percentage of your cases were you retained by the plaintiff?
A: 75%
Q: In what percentage of your cases were you retained by the defendant?
A: 20%
Q: On how many occasions have you had your deposition taken?
A: I have given sworn testimony over 100 times
Q: When was the last time you had your deposition taken?
A: Last time I gave sworn testimony was December 2015
Q: On how many occasions have you been qualified by a court to give expert testimony?
A: Between 40 and 50 times in state or federal court. Over 600 times in arbitration.
Q: On how many occasions have you testified as an expert in court or before an arbitrator?
A: Between 40 and 50 times in state or federal court. Over 600 times in arbitration.
Q: For how many years have you worked with the legal industry as an expert?
A: Over 1,100 times.
Q: What services do you offer? (E.g.: consulting, testing, reports, site inspections etc.)
A: I do general financial consulting. I do general portfolio analysis. I do due diligence work as it relates to both investments and business transactions. I do consulting to lawyers on the issues of securities regulations, and the FINRA arbitration process. I act as a securities fraud expert witness in arbitration and litigation.
Q: What is your hourly rate to consult with an attorney?
A: I charge between $400 and $500 an hour, for any and all work. I do an initial consultation for free.
Q: What is your hourly rate to review documents?
A: I charge between $400 and $500 an hour, for any and all work. I do an initial consultation for free.
Q: What is your hourly rate to provide deposition testimony?
A: I charge between $400 and $500 an hour, for any and all work. I do an initial consultation for free.
Q: What is your hourly rate to provide testimony at trial?
A: I charge between $400 and $500 an hour, for any and all work. I do an initial consultation for free.
Q: Please list any fees other than those stated above (E.g.: travel expenses, copy fees, etc.)
A: I charge for travel expenses and travel time. Travel time does not start until I am at the airport at Colorado Springs, Colorado.


References

please see INVEST website for references www.securitiesexpert.com Aside from references listed on my website, I provide a list some of the top nationally ranked securities attorneys in the country to serious inquiries.