Stoltmann Law Offices is investigating Charles Schwab broker Nicholas P. Vargas for his involvement in a check-kiting scheme. According to a Financial Industry Regulatory Authority (FINRA) complaint filed, Mr. Vargas converted funds from Schwab’s bank affiliate. A check-kiting scheme is one in which the account holder writes a check for an amount, knowing there are insufficient funds in that account, depositing the check into a second account and withdrawing funds from the second account before the check has a chance to clear. Vargas used converted funds from Schwab’s affiliate bank by using three separate bank accounts. In total, he converted $49,390 from the banks in his illegal scheme. Vargas also allegedly failed to respond to the FINRA investigation against him by failing to provide necessary documents and failing to respond to the investigation against him.
Vargas was registered with Charles Schwab in San Francisco, California from May 2001 until November 2012. He is not currently registered with any firm, nor is he licensed within the industry. If you would like to sue Nicholas P. Vargas, you may do so in the FINRA arbitration process. We sue firms such as Charles Schwab for failing to supervise their employees. Our number is 312-332-4200.