Schultz-Reineke, a German citizen living in Manhattan, faces up to 85 years in prison on the charges. He is scheduled to be sentenced on Sept. 28.
"It was a tragic day for him," said Roland Riopelle, Schultz-Reineke's lawyer. "We look forward to completing the proceedings. He looks forward, at some point, to going home to Germany."
Prosecutors alleged that Schultz-Reineke and others engaged in a scheme to defraud clients of Results Securities and Signature Investments. Many of the investors were German, prosecutors said.
Schultz-Reineke and others would secretly pay significantly more than publicized in its fee schedule to individuals employed by the companies to induce clients to invest, the government said.
Prosecutors said Schultz-Reineke and others also caused to be created customer account statements and trade confirmations that falsely represented purchases and sales of securities, as well as profits and losses incurred on those trades.
Schultz-Reineke and others directed a substantial portion of the investors' money be used for purposes other than trading securities, including for the firms' operating expenses and for their personal use.