The Department of Enforcement alleges: 1. Respondent Gustave Schmidt failed to disclose compensation related to private placements that he brought to his firm and recommended to his clients, including a fee that exceeded the maximum disclosed amount in the offering documents by fifty percent. Despite this outsized compensation, Schmidt failed to have a reasonable understanding of the risks, rewards, and costs associated with the products he was recommending. 2. Between December 2020 and April 2021, while associated with Investment Network Inc.

From at least January 2016 through April 2022, NSI violated Regulation SHO Rule 200(f) and FINRA Rule 2010 by including securities positions of two affiliates when calculating the net positions of an independent trading unit. In addition, from at least January 2016 through April 2022, NSI violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system that was reasonably designed to achieve compliance with Rule 200(f). For these violations, NSI is censured, fined $625,000, and required to certify that its business complies with Rule 200(f).

From September 2022 through March 2023, Laidlaw conducted a securities business while failing to maintain the required minimum net capital on at least 108 days and filed two inaccurate notices of net capital deficiency, in violation of Exchange Act §§ 15(c)(3) and 17(a), Exchange Act Rules 15c3-1 and 17a-11, and FINRA Rules 4110(b)(1) and 2010.

Between October 2016 and December 2022, Lang engaged in outside business activities without prior written disclosure to his two member firms. As a result, Lang violated FINRA Rules 3270 and 2010. For these violations, Lang is suspended for four months in all capacities and fined $5,000.

From January through December 2023, while associated with Pruco Securities, Carter recommended that two retail customers, a married couple, engage in options trading that was not in their best interest or suitable for them. As a result, Carter willfully violated Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 and violated FINRA Rules 2360(b)(19)(A) and 2010.