Sanders Spangler Barred by FINRA

Sanders Spangler, formerly a broker for LPL, was recently barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”), for refusing to appear at a hearing before the regulator investigating his trading history on behalf of his clients.  Mr. Spangler was previously terminated by LPL in February 2017 based on a finding by LPL that he had exercise trading discretion in the accounts of some of his customers, in violation of LPL firm policy and applicable regulations.

Clients have to give their broker direct authorization for every trade that is made in the client’s account.  The authorization typically comes one of two ways.  The client could talk to the broker about each trade, when it is going to be placed, and before it is entered.  This authorization cannot be given in advance, otherwise it is probably “time and price discretion,” which is also forbidden.  On the other hand, the broker can get a document signed by the client in advance, which would state that the broker can trade the client’s account without contacting the client each time.  However, this type of authorization has to be in writing and given to the brokerage firm.  This is critical because accounts being managed on written discretionary authority have to be reviewed more closely by the firm.

Unfortunately, when brokers act dishonestly with some clients, as Mr. Spangler has been accused of doing, they often do so with many clients.  If you are or were a client of Mr. Spangler and believe you may have been inappropriately invested or otherwise lost money with him, contact the law firm of Shepherd, Smith, Edwards & Kantas LLP for a free, no obligation evaluation of your account to determine if you might have a claim to attempt to recover some or all of your losses.  All communications will be kept strictly confidential, and you will not be billed in any way for a consultation.
 
Shepherd, Smith, Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors nationwide to recover losses.
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