Karen Schmidt Allegedly Recommended Unsuitable Non-Variable Life Insurance Policies

Karen Schmidt (CRD #: 5669963), a broker registered with Northwestern Mutual Investment Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 29, 2024. Details concerning this dispute are provided below. 

Investor Allegations

On March 11, 2024, investors alleged that Karen Schmidt recommended unsuitable non-variable life insurance policies and a fixed annuity. She allegedly did not inform them of the illiquid nature of the annuity. She also alleged that the representative initiated a transfer from a brokerage account without their knowledge to fund the fixed annuity. The investor is seeking $400,000. 

Another dispute from 2018 alleging that Karen Schmidt acted fraudulently in the sale of a variable annuity and three non-variable life insurance policies as a benefit to four company employees, where the corporation was the premium payer. She allegedly did not obtain the necessary board approval as a payer of the policies and annuity. The dispute was settled for $326,674.60. 

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. 

Background Information 

Karen Schmidt has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 

She is a registered broker in 34 states. 

Kurta Law Can Help 

If you have worked with Karen Schmidt and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.