fbpx

Sanders Spangler, former LPL Financial LLC Stockbroker, Barred from Securities Industry for Failing to Cooperate with FINRA’s Investigation into Alleged Unauthorized Trading

barred by finra

Share Page

Share on twitter
Share on facebook
Share on google
Share on linkedin
Share on email
Share on print

According to public records, FINRA barred former broker Sanders Spangler from the securities industry on March 26, 2018.  FINRA (Financial Industry Regulatory Authority, Inc.) registers and regulates securities brokers and brokerage firms.

In a Letter of Acceptance, Waiver and Consent (AWC), FINRA stated it barred Sanders Spangler because he declined to give sworn testimony regarding FINRA’s investigation into whether he made unsuitable investment recommendations to five of his customers.

Sanders Spangler’s customers had previously filed five claims against him between March 2016 and October 2017.  The claims alleged Spangler made trades in his customers’ accounts without proper authorization to do so and recommended his customers unsuitable investment products and strategies, such as an over-concentration of energy stocks.  One claim is pending while four have settled for collective recoveries to investors of $785,000.

Sanders Spangler entered the securities industry as a General Securities Representative in 2000.  From October 2005 through February 2017, he was a registered with LPL Financial LLC.  LPL reported it discharged Spangler on February 10, 2017 for exercising discretionary power in customers’ accounts without the customers’ permission.

Recovery Options for Losses Caused by Unauthorized Trading and Unsuitable Investments

Rules and regulations require brokers to recommend only suitable investment products and strategies to their customers.  Suitability is based on factors such as a customer’s age, investment objective, risk tolerance, investment experience, and financial status and needs.  Additionally, rules require brokers to obtain express written authority from customers before making decisions on behalf of the customers to place trades or otherwise manage their accounts.  However, when brokers make decisions on behalf of their customers, they owe their customers a greater duty of care, even if the brokers did not properly obtain authority to make those decisions.

Further, firms have a duty to closely monitor and supervise their brokers’ conduct to ensure they follow securities rules and regulations.  This includes ensuring their brokers only recommend suitable investment products and strategies.  A firm’s duty to supervise is heightened when their broker makes decisions on behalf of a customer, even if the broker was not properly granted such authority.

When brokers and firms violate these rules and breach these duties, customers have a right to pursue claims to recover their investment losses caused by such misconduct.  Moreover, brokerage firms are often found liable for their brokers’ misconduct.

If you have financial losses after investing with Sanders Spangler, contact Marquardt Law Office LLC to speak with a securities attorney and receive a free consultation.

Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.

Adam J. Marquardt

Adam Marquardt represents investors in securities litigation claims such as unsuitable investments, negligence, and fraud. He is dedicated to recovering financial losses for investors, primarily through FINRA arbitration. Adam’s background includes experience as a FINRA regulator, an accountant and auditor, and an attorney who recovered $8 million litigating cases involving fraudulent financial practices. Adam is a certified public accountant and attorney licensed in Illinois.

Search MarquardtLawOffice.com

Search Posts by Category

Send message to set up

Recent Posts

Scroll to Top