Category Archives: Richard Sandru

Ohio Securities Regulators Suspend Eric M. Douglas

On April 29th, 2013, the Ohio Division of Securities entered a final order suspending the Investment Representative and Securities Salesperson License of Eric M. Douglas. The suspension is for 90 days from the date of the Order, which is subject to appeal.

This action is a result of a Notice of Hearing that was filed in 2012 related to the sale of stock by Douglas in Maumee Authority Stamping while he was working for Sandru Financial Group in 2008. The Findings of Fact approved and adopted in the Order include findings that:

  • Douglas admitted that all due diligence on the Maumee Authority Stamping investment was being done by LPL Financial’s compliance department, not him personally, and that he never saw the results of their research and had no independent basis on which to assess the suitability of the investment.
  • Witnesses testified that Douglas told them the Maumee investment was beneficial, a very good investment that was going to take off like crazy and that investors would make so much money they would not have time to spend it.

The Ohio regulators found that Douglas engaged in manipulative and deceptive acts when he recommended the Maumee investment to investors without performing or having access to proper due diligence on the terms of the deal. They further found that as a trusted fiduciary and adviser to his clients, Douglas had a duty to protect his client’s funds and inform their interest in the purchase of Maumee stock. Here is a link to the Ohio Division of Securities Order.

FINRA records indicate that Douglas is not currently registered and that he worked for the following broker dealers in Perrysburg, Ohio,  during the dates indicated:

  • Cambridge Investment Research, Inc.                                       07/2009-07/2012
  • LPL Financial Corporation                                                        04/2008-07/2009
  • Ameritas Investment Corp.                                                        03/2005-04/2008

Ameritas Investment Corp. was formed in 1984. They have nearly 1,300 registered representatives in over 550 offices nationwide. Their main office is located in Lincoln, Nebraska.

Richard P. Sandru who ran Sandru Financial Group is the subject of a Securities and Exchange Commission cease and desist order for misappropriating client investment advisory funds. FINRA records indicate that several  clients have brought actions against Sandru for losses in Maumee Authority Stamping. Sandru is not currently registered with FINRA.

Mark A. Pantenburg, who is not currently registered with FINRA, worked with Sandru and Douglas at Sandru Financial, received a 60 day suspension by Ohio regulators in December 2012, as a result of the sale of an interest in the Maumee investment. Here is a link to the Ohio Divison’s order.

If you have questions about the losses in your brokerage account, call us to discuss your legal rights. Free iniital consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

SEC Announces Action Vs.Richard P. Sandru

On April 8, 2013, the Securities and Exchange Commission (SEC) announced the issuance of an Order Instituting Administrative and Cease And Desist Proceedings Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 and other statutory violations against Richard P. Sandru. View the Order.

The SEC Order alleges that from at least December 2009 through March 2011, while associated with Cambridge Investment Research Advisors, Inc. (Cambridge), Sandru misappropriated at least $308,850 in purported financial planning fees from at least 47 clients.  During this same period Sandru misrepresented the actual values of customer accounts to certain clients to conceal the diminishing value of the accounts in order to allow him to continue to purchase and sell securities in the accounts and to collect advisory fees.

Sandru, who conducted business under the name Sandru Financial Group and Reizen Wealth Management, was associated with Cambridge from July 1, 2009 until April 29, 2011 and worked the Perrysburg, Ohio branch office.

The SEC order also alleges that Sandru:

  • forged signatures or added costs to Financial Planning Engagement agreements after the clients signed them and without his client’s knowledge or permission
  • failed to provide financial planning services as described in the agreements
  • submitted the forged documents to Cambridge’s accounting office who paid Sandru 91% of the financial planning fees
  • collected financial planning fees ranging from $500 to $5,000 per agreement
  • charged some clients four or five times over several months for unauthorized and unperformed financial planning services
  • Beginning in 2008 while Sandru was associated with another broker dealer ( Sandru was LPL Financial from 9/2002-6/2009 according to FINRA records) Sandru lost money through his trading in several client accounts and told some of these elderly and/or retired clients that they would be able to make substantial withdrawals from their accounts for the rest of their lives or at least for many years
  • went as far as to pay monthly distributions to clients after their funds were exhausted to conceal his scheme

A hearing has been scheduled before an Administrative Law Judge to provide Sandru the opportunity to respond, to determine if the allegations are true and whether remedial actions or other relief is appropriate.

REX Securities Law On Going Investigation of Sandru & LPL Financial

Rex Securities Law began an investigation of Sandru during the summer of 2012 on behalf of a group of former customers of Sandru who have made allegations against Sandru’s prior employer LPL Financial that are substantially identical to those in the cited SEC Order. Sandru was permitted to resign from LPL Financial for attempting to resolve a customer issue without firm approval per FINRA records.

If you have information related to the investigation of Sandru’s actions at LPL Financial and/or Cambridge Investment Research we would appreciate hearing from you.

For more details on that investigation see this page.

If you have a question about your investment account call to speak with an experienced securities fraud attorney.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Rex Securities Law Investigates Richard Sandru on Behalf of Victimized Investor .

Rex Securities Law Investigates Richard Sandru on Behalf of Victimized Investor .

UPDATE April 2013- Since the post below was published in April of 2012, our investigation has expanded substantially.

We now represent a group of former clients who are seeking recovery of losses from LPL Financial. In addition, the SEC just issued an order alleging that Sandru forged documents, took unauthorized financial planning fees and misrepresented account balances to clients while he was employed with Cambridge Investment Research.

Follow this to read the SEC order.

Follow this to read our recent post on the ongoing investigation as well as the SEC order.
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Richard Sandru, also known as Rick Sandru, the March 2012 FINRA disciplinary proceedings announced that Sandru has been barred from association with any FINRA  member. Here is the excerpt
on Sandru’s exit from the industry from the FINRA website:

Richard Patrick Sandru (CRD #2470082, Registered Principal, Fort Myers, Florida) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Sandru consented to the described sanction and to the entry of findings that he caused financial planning forms for investment advisory customers to be submitted to the corporate accounting office that services his member firm and its investment advisor affiliate without the customers’ knowledge or authorization, and without providing the financial planning services described in the forms so that the customers were improperly charged fees ranging from $500 to $5,000 per financial plan. The findings stated that Sandru generated approximately $321,350 in unauthorized financial planning fees, which he converted for his personal benefit; Sandru received approximately $292,428.50 in accordance with his payout. The findings also stated that Sandru failed to respond to FINRA requests for information and documents and, through counsel, notified FINRA that he would not respond to any requests for information.

We are investigating this matter on behalf of one of Sandru’s
former clients and would appreciate hearing from anyone who has any information that may be helpful to our investigation. A review of
Sandru’s CRD( FINRA’s registration records) reveals the following:

 

  • 4/1/2011-8/30/2011: Sandru worked for Sun Shine Investment Consultants, LLC. Ft. Meyers, FL.
  • 7/1/2009-4/29/2011:
    Sandru worked for Cambridge Investment Research Advisors, Inc. &
    Cambridge Investment Research, Inc. He was terminated for failing to
    inform the firm about a customer issue in accordance with firm policy.
    Fairfield, IA.
  • 9/20/2002-6/29/2009:
    Sandru worked for LPL Financial Corporation. He was permitted to resign
    for attempting to resolve customer concerns without approval from the
    company, in violation of firm policy.Perrysburg, OH.
  • Customer
    complaint that Sandru created a user name and password for their account
    and made unauthorized withdrawals. Damages sought are $945,000.
  • Customer complaint seeking damages of $96,219 for sale of BP ADRS and other investments.
  • Customer complaint in connection with Maumee Authority Stamping.
  • IRS Lien for $89,000 in 2007 for payroll taxes , paid off in 2009.
  • Customer complaint for $18,280 for losses and reimbursement of advisory fees.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870