UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-83552, IA Release 40- 4949 / June 28, 2018: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Jon Brett Schmidhammer ("Schmidhammer" or "Respondent"). The Commission finds that On March 14, 2017, in the criminal division of the Court of Common Pleas for Franklin County, Ohio, Schmidhammer pled guilty to one count of unlawful securities practices, a second degree felony. State of Ohio v. Jon B. Schmidhammer, Case No. 16-CR-004165. On May 4, 2017, the court entered judgment against Schmidhammer and sentenced him to five years of "Community Control Under Basic Supervision," pursuant to which he was ordered to serve thirty consecutive weekends at the county jail and a term of post-release supervision. The court also ordered Schmidhammer to pay $196,387.25 in restitution. The count of the indictment to which Schmidhammer pled guilty alleged that Schmidhammer violated Section 1707.44 of the Ohio Revised Code by engaging, as an investment adviser representative, in a course of business that operated as a fraud upon a person.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

6/28/2018

participating in any offering of a penny stock

Indefinite

6/28/2018

Claimant alleges negligence, unsuitable management, unauthorized trading, violations of the Ohio Securities Act, breach of contract, breach of fiduciary duty, and conversion.

$500,000.00

$499,000.00

FINRA

Respondent Schmidhammer failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

12/5/2016

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated September 2, 2016 and September 26, 2016, respectively, on December 5, 2016, Schmidhammer is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

R.C. 1707.44 - Securities Law Violation

Pled guilty

R.C. 2913.02(a)(1) - Theft

Dismissed

Stifel Nicolaus

Voluntary Resignation

Jon Schmidhammer resigned after his arrest for allegedly stealing money from a client.

UBS PAINEWEBBER

Discharged

PROVIDED INACCURATE STATEMENTS ON PRE-EMPLOYMENT APPLICATION.

AT TIME OF EMPLOYMENT ADVISED TO ANSWER QUESTION BY EMPLOYING BRANCH MANAGER TO ANSWER "NO" ON THE INTERNAL FORM BECAUSE IT WAS RELATED TO ANOTHER QUESTION WHICH I ANSWERED "YES" TO.

AMERICAN STOCK EXCHANGE

SCHMIDHAMMER HAS BEEN CHARGED FOR (I) VIOLATING EXCHANGE RULE 345(A)(4) AND SECTION 220.13 OF REGULATION T OF THE FEDERAL RESERVE BOARD RULES AND REGULATIONS FOR INAPPROPRIATELY EXTENDING CREDIT TO A CUSTOMER TO SATISFY MARGIN REQUIREMENTS IN THE CUSTOMER ACCOUNT, AND (II) VIOLATING EXCHANGE RULE 345(A)(4) IN THAT HE FAILED TO FOLLOW THE FIRM'S INTERNAL PROCEDURES REGARDING THE EXTENSION OF CREDIT, AND MISLED THE FIRM IN AN ATTEMPT TO AVOID DETECTION FOR HIS FAILURE TO FOLLOW SUCH PROCEDURES.

Stipulation and Consent

Monetary/Fine

$10,000.00

Censure

IN ACCORDANCE WITH A STIPULATION OF FACTS AND CONSENT TO PENALTY, AN EXCHANGE DISCIPLINARY PANEL DETERMINED THAT SCHMIDHAMMER VIOLATED EXCHANGE RULE 345(A)(4) AND SECTION 220.13 OF REGULATION T OF THE FEDERAL RESERVE BOARD RULES AND REGULATIONS, AS STIPULATED, AND AS A PENALTY, IMPOSED A CENSURE AND A $10,000 FINE.

NO SANCTION OTHER THAN THAT INDICATED ABOVE.