Securities Lawyers Blog
The investment fraud attorneys at Gana Weinstein LLP have been investigating previously registered broker Sanders Spangler (Spangler). According to BrokerCheck Records kept by the Financial Industry Regulative Authority (FINRA), In February 2017, LPL Financial LLC (LPL Financial) terminated Spangler for executing unauthorized trades in non-discretionary customer accounts. Shortly after, in March 2018, FINRA barred Spangler from financial industry due to Spangler’s failure to appear to an on-the-record testimony regarding the unauthorized trade allegations against Spangler at LPL Financial. By failing to appear to the testimony, Spangler was in violation of FINRA Rules 8210 and 2010. Without admitting or denying the findings, Spangler consented to the sanction and to the entry of findings. However, the extent of which Spangler executed unauthorized trades is still unclear.
Spangler has also been subject to six customer disputes within the past two years. Two of these disputes are still pending.
In March 2018, Spangler’s ex-wife alleged that Spangler was forging her account documents. This dispute is currently still pending.
In October 2017, a customer alleged that Spangler was over-concentrating the customer’s investments in risky energy stocks. In addition, the customer alleged that Spangler has liquidated the account without permission from the customer. This dispute is currently still pending.
In June 2017, a customer alleged that Spangler instigated unsuitable, unauthorized trades in a non-discretionary customer account without the customer’s knowledge or permission. The case settled for $225,000.
Advisors are not allowed to place any trades without full consent and written approval of the customer. Unauthorized trading occurs when a broker sells securities without the prior written consent from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). The Securities Exchange Commission (SEC) has found that no disclosure could be more important and material to an investor than to be made aware that trading is taking place. Unauthorized trading is often a gateway violation to other securities violations including churning, unsuitable investments, and excessive use of margin.
Spangler also has an unusual amount of complaints on his record in comparison to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. However, studies have found that in certain parts of California, New York or Florida, the rates of disclosure go up to as high as 18%. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters.
Spangler’s entered the securities industry in 2000. From October 2005 to March 2017, Spangler was a registered representative at LPL Financial. From July 2000 to October 2005, Spangler was registered with Edward Jones. Spangler is currently not registered with any firm.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of security fraud and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.