Gary Lee Schaap (CRD #3065293) Has Customer Dispute Disclosures on FINRA BrokerCheck

Gary Lee Schaap (CRD #3065293) is a broker with customer dispute disclosures on FINRA BrokerCheck. We reviewed his BrokerCheck report on May 13, 2026. It reflects two customer dispute disclosures. If you invested with Gary Schaap and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

Gary Schaap’s FINRA BrokerCheck Report reflects two customer dispute disclosures. Summaries of the disputes are below:

On March 24, 2026, a customer alleged Gary Schaap recommended investments in 2015 and 2016 that were unsuitable for a retiring client who requested conservative, low-risk investments. The customer requested $1,378,624 in damages. Gary Schaap FINRA BrokerCheck lists the product as closed-end funds. The complaint remains pending.

On July 2, 2008, customers alleged they were not informed of withdrawal penalties on annuity or REIT investments purchased in May 2007. The customers requested $10,000 in damages. Gary Schaap FINRA BrokerCheck lists the products as variable annuities and a REIT. The matter settled on August 22, 2008. Gary Schaap FINRA BrokerCheck reports a $0 settlement and a $0 individual contribution. Schaap’s statement says the clients received full disclosure. It also says there was miscommunication, and the firm allowed the clients to use the free-look policy.

Rule Summary #1: FINRA Rule 2330 (Deferred Variable Annuities)

FINRA Rule 2330 applies to recommended purchases and exchanges of deferred variable annuities. It can matter when a complaint involves annuity features like surrender charges, fees, or risk.

Rule Summary #2: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a reasonable basis for a recommendation. The broker must consider the customer’s profile, including risk tolerance, time horizon, and liquidity needs.

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:

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.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

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.

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 Gary Schaap’s FINRA BrokerCheck report, Gary Schaap:

Is currently registered with Ameriprise Financial Services, LLC.

Has passed the Securities Industry Essentials (SIE) exam. Gary Schaap has passed Series 7. He has also passed Series 65 and Series 63.

Was previously registered with IDS Life Insurance Company.

Kurta Law Can Help

If you have worked with Gary Schaap and you have concerns about his activity, 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: Variable Annuities | Unsuitable Investments

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.