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 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.
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