Stephen Michael Franko (CRD #2157707, Mount Vernon, Ohio) and Thomas Gregory Scheiman (CRD #1508288, Broadview Heights, Ohio)

November 17, 2025 – An AWC was issued in which Stephen Michael Franko was fined $5,000, suspended from association with any FINRA member in all capacities for three months, and ordered to pay $5,640, plus interest, in partial restitution to customers. Thomas Gregory Scheiman was fined $5,000, suspended from association with any FINRA member in all capacities for two months, and ordered to pay disgorgement of commissions received in the amount of $2,600, plus interest. Without admitting or denying the findings, Franko and Scheiman consented to the sanctions and to the entry of findings they willfully violated Rule 15/-1(a)(1) under the Securities Exchange Act of 1934 (Reg BI) by recommending that customers invest in speculative and unrated corporate bonds that were not in the customers' best interests. The findings stated that Franko made recommendations of the bonds totaling $195,000 to three senior retail customers with investment objectives of income and that did not include speculation. Franko earned $5,640 in commission in connection with his recommendations. The findings also stated that Scheiman recommended and sold a $100,000 bond to an elderly retail customer with an investment objective of income and that did not include speculation. Scheiman earned $2,600 in commission in connection with this recommendation. Franko and Scheiman did not exercise reasonable diligence, care, and skill to, among other things, have a reasonable basis to believe that the recommendations to their customers were in the customers’ best interest based on their investment profiles and the potential risks, rewards, and costs associated with the recommendations. After the customer complained to Scheiman’s member firm, it returned the customer’s principal amount. Franko’s suspension is in effect from December 15, 2025, through March 14, 2026. Scheiman’s suspension is in effect from December 15, 2025, through February 14, 2026. (FINRA Case #2022074289901) If you have suffered losses as a result of Franko and Scheiman's act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Franko and Scheiman. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at  (813) 226-3372 or email Matthew Schwartz directly at mschwartz@tslfirm.com.