The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Sanders Spangler. According to his publicly available FINRA BrokerCheck report, Sanders Spangler has been the subject of multiple customer disputes.

Sanders Spangler was a Texas-based securities broker. He worked in the securities industry for sixteen years. He spent his entire career registered with just two different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Edward Jones (2000-2005)
  • LPL Financial (2005-2017)

The Allegations

  • In March 2016, a customer alleged their account managed by Sanders Spangler experienced poor performance. This case was settled for $50,000 in damages.
  • In February 2017, Sanders Spangler was discharged from his position at LPL Financial. This followed allegations that he exercised discretion in customer accounts without the proper authorization from the account holder(s). LPL Financial had also not accepted the account(s) as suitable for discretionary trading.
  • In April 2017, a customer alleged that Sanders Spangler exercised discretion in their account which in turn resulted in poor performance. This case was settled for $40,000 in damages.
  • In May 2017, a customer alleged unauthorized trading committed by Sanders Spangler led to poor performance. This case was settled for $20,000 in damages.
  • In June 2017, a customer alleged that Sanders Spangler executed unsuitable trades in their account without authorization. This case was settled for $225,000 in damages.
  • In October 2017, a customer alleged that Sanders Spangler over-concentrated their account in energy stocks. They also alleged that Spangler liquidated their account without their knowledge and altered account statements. This case was settled for $850,000 in damages.
  • In March 2018, Sanders Spangler was officially sanctioned by FINRA. The findings state that Spangler failed to comply with an investigation into his alleged unauthorized trading. Due to this alleged failure to comply, Sanders Spangler was barred by FINRA from acting as a securities broker in any fashion.

Unauthorized Trading

There is a common misconception among investors that hiring a securities broker to manage their brokerage accounts relinquishes their control over it–this is not the case. Securities brokers are required to obtain their customer’s authorization before executing trades on their behalf. This is because it is the investors themselves who have final say regarding what they are ultimately invested in. Securities brokers who circumvent this procedure usually do so because they want to invest their customer in something that is unsuitable for them.

There is a trading practice known as discretion that allows securities brokers to execute trades in an investor’s account without having to obtain their authorization prior to every trade. However, before a securities broker can begin engaging in this practice, they must first receive express written authorization from the account holder. The broker’s member firm must also accept the account in question as one that is suitable for discretionary trading.

Discretion can be a very slippery slope due to how much power it gives to brokers. Brokers with this authority over an account now have an easier time trading said account in an unsuitable manner. They can place the customer in investments they are not financially suited for, or they can trade the customer’s account excessively. Both of these are self-serving acts designed to increase a broker’s commissions at the investor’s expense.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Sanders Spangler, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are fees charged unless we collect for you.