The Securities and Exchange Commission recently barred a broker who ran a fraudulent real estate investment scheme that conned investors out of $50 million. But the broker, Louis Schooler, has mysteriously disappeared after his yacht ran aground near Tahiti, Bloomberg BNA reports. Schooler’s remains have not been found, and the U.S. State Department considers him to be missing, rather than dead, according to the publication. The SEC shut down Schooler’s firm, Western Financial Planning Corporation, in September 2012, alleging that he conned people into buying vacant plots of land in Nevada. Schooler lead investors to believe that they were getting a good deal, when, in fact, the land was worth only a small fraction of their investment. The district court ordered Schooler to pay $147 million in disgorgement and prejudgment interest and a civil penalty of about $1 million.
ETF Investment: Millennials vs. Boomers
Millennials shy away from conventional ETF investment choices, more so than baby boomers, according to an E*Trade study of U.S. investors. While boomers show a preference for dividend ETFs, Millennials demonstrate underlying interest in funds considered less mainstream, including commodity, style and foreign currency ETFs. For the general population, though, U.S. market ETFs, dividend ETFs, and sector- and industry-specific ETFs are among the most popular. “The strong interest in U.S. market index ETFs suggests investors have faith in the domestic markets post-Brexit,” said Rich Messina, senior vice president of investment product management at E*Trade Financial. “While U.S. market index ETFs are by far the most popular choice, investors are exploring additional asset classes in search of yield, downside protection, and income generating positions.”
RBC Adds $1 Billion Morgan Stanley Team
RBC Wealth Management has recruited a San Antonio, Texas-based team, with $1 billion in client assets and more than $3.6 million in production, from Morgan Stanley. The Evergreen Group will work out of RBC’s San Antonio branch office as well as the firm’s new office in Lufkin, Texas. The team includes Managing Director Phillip Friesen, Senior Vice President Chuck Crowson, Vice Presidents John Friesen and Greg Bowman, Associate Vice Presidents Josh Zeleskey and Karen Ronaghan, and Senior Registered Client Associate Bonnie McKinney.