Former Nebraska City stockbroker Brian Schuster is being held at the Otoe County Detention Center pending a hearing Thursday in Otoe County Court.
Schuster, 35, is charged with eight felony counts regarding sales of promissory notes or debentures in the Florida-based entities American Capital Corporation or Royal Palm Capital Group.
Special Prosecutor Michael Guinan filed the complaint against Schuster saying William and Marcene Bottcher, Richard and Elaine Hauberg, Harry and Valetta Janssen, Peggy and Gerald Leefers, Helen and Otto Volker, Faith Eyman, Frances Jean Campbell and Esther Schnitzer are victims of fraud.
An arrest warrant was issued for Schuster based on an affidavit from Thomas Sindelar, investigation supervisor for the Nebraska Department of Banking and Finance.
The affidavit says investors in ACC and Royal Palm lost an estimated $20 million.
Sindelar told Sarpy County Judge Todd Hutton that the Securities Act of Nebraska’s primary focus is the protection of investors. “This protection is achieved through the requirement that sellers of securities make full disclosure of all material information to prospective purchasers,” he said.
“Omissions and misrepresentations of material information are equal violations,” he said.
He said a survey of Nebraska City investors who responded to a banking department survey indicated they did not receive significant or timely information disclosing the “highly speculative or risky nature” of the various ACC and Royal Palm securities.
Nebraska City, Neb. —
