Donal Ray Schmidt Jr (CRD #1973321) Has a Regulatory Action Disclosure on FINRA BrokerCheck

Donal Ray Schmidt Jr (CRD #1973321) was previously registered and appears on FINRA BrokerCheck. We reviewed his BrokerCheck report on February 17, 2026. It reflects a regulatory action disclosure. FINRA BrokerCheck also indicates he is barred by FINRA. If you worked with Donal Ray Schmidt Jr and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

Donal Schmidt’s FINRA BrokerCheck report reflects one regulatory action disclosure. A summary of the disclosure is below:

On December 4, 2025, the Securities and Exchange Commission entered an order after a federal court issued a final judgment in an SEC civil action involving Rapid Therapeutic Science Laboratories, Inc. The judgment permanently enjoined Donal Schmidt from future violations of several federal securities laws and rules. It also ordered disgorgement of $144,285, prejudgment interest of $38,596, and a $236,451 civil penalty. FINRA BrokerCheck states that the SEC suspended him from appearing or practicing before the Commission as an attorney and as an accountant. The suspension is indefinite. BrokerCheck notes he may apply for reinstatement after five years.

Rule Summary #1: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 is a broad conduct rule. It requires members to observe high standards of commercial honor. Disclosures that involve misleading statements can raise questions about whether communications were fair and accurate.

Rule Summary #2: FINRA Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices)

FINRA Rule 2020 prohibits inducing the purchase or sale of a security through manipulative or deceptive conduct. If an investor relied on false or misleading information, this rule may be relevant to how the conduct is evaluated.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

1. Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.
2. Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.
3. Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.
4. Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on His FINRA BrokerCheck report, Donal Schmidt:

Is not currently registered with any FINRA member firm.

Is barred by FINRA.

Kurta Law Can Help

If you have worked with Donal Ray Schmidt Jr. and have concerns about his conduct, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | Investment Fraud

For nearly 20 years, Kurta Law has represented clients in FINRA arbitration cases across the United States. The firm has recovered more than $100 million for investors. Kurta Law represents investors only and works on a contingency fee basis. If you would like more information, contact Kurta Law at 877-600-0098 or info@kurtalawfirm.com.