FINRA Bars Minneapolis Advisor Dan Schmid Over ,000 Customer Loan and False Statements

FINRA Bars Minneapolis Advisor Dan Schmid Over $24,000 Customer Loan and False Statements

FINRA has permanently barred Minneapolis financial advisor Dan Schmid (CRD# 6658306) from the securities industry. A Letter of Acceptance, Waiver, and Consent filed in September 2026 details a $24,000 loan from a customer and the false statements Schmid gave investigators who asked about it.

What happened

Schmid spent most of his career with Northwestern Mutual Investment Services, which prohibited associated persons from borrowing money from customers except in narrow circumstances. In July 2024, he borrowed $24,000 from a Northwestern Mutual customer to finance a business venture. The loan did not fit within any permitted exception, and he did not seek firm approval.

He repaid the loan. But FINRA’s investigation zeroed in on what happened next. When regulators asked him about the arrangement, he falsely denied involvement in the business venture and denied receiving the money, according to the settlement letter.

Key facts from the FINRA action

Detail Figure
Advisor Dan Schmid, CRD# 6658306
AWC number No. 2024083956101
Customer loan $24,000, July 2024
Loan purpose Finance a business venture
Sanction Barred in all capacities
Industry experience 9 years

Firm and registration history

Schmid’s BrokerCheck profile shows roughly nine years in the securities industry. He was registered as a broker with Northwestern Mutual Investment Services before joining Equitable Advisors, where he was registered from 2024 until 2026. His BrokerCheck report discloses his resignation from Northwestern Mutual Investment Services.

The case shows how a single unsanctioned loan can end a career. FINRA rules restrict borrowing from customers because it creates a conflict of interest and puts the customer’s money at risk. A $24,000 loan might sound modest next to the million-dollar frauds that dominate headlines. The sanction shows FINRA treats the false statements as the aggravating factor. Honesty during an investigation is the line that, once crossed, ends any defense.

Red flags customers should watch for

A financial advisor who suggests a personal loan between advisor and client is asking you to abandon the structure that protects both sides. Legitimate advisors do not borrow from customers. If a private loan goes wrong, the customer has no recourse through the firm, because the firm never approved the arrangement.

The second lesson concerns disclosure. Schmid repaid the money, yet the bar still landed. Regulators weigh candor heavily. An advisor who lies to FINRA about one transaction may lie to you about others.

What investors should do

Anyone who worked with Dan Schmid at Northwestern Mutual or Equitable Advisors and experienced losses connected to his outside business activities should pull account statements and any loan documents now. A bar ends the advisor’s securities career, but it does not compensate customers. Recovery for customer harm typically runs through FINRA arbitration claims against the advisor and the supervising firm.

Investors who believe they suffered losses related to this matter may wish to consult a qualified securities attorney to review their options.

How to recover your losses

Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.

Contact Haselkorn & Thibaut today

Time matters in recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.

Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.

This article is for informational purposes only and does not constitute legal advice.

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