SEC Issues Final Order Vs. Former LPL Financial & Cambridge Investment Research Broker Richard Sandru

SEC Issues Final Order Vs. Former LPL Financial & Cambridge Investment Research Broker Richard Sandru 150 150 Rex Securities Law

On August 12, 2013, a final order was entered against Richard P. Sandru (Rick Sandru) by the SEC making findings and imposing sanctions. The order may be viewed here.

Sandru did not defend the Order Instituting Proceedings (OIP), that was filed in April 2013 and was held in default for failing to respond
or otherwise defend.

The SEC made numerous findings of fact , including the following:

  • Sandru joined Cambridge Investment Research Advisors, Inc.
    in July 2009 where he supervised two other Cambridge representatives. By the time he left Cambridge in April 2011, he was managing, on a discretionary basis, about $47 million in assets for about 180 clients.
  • Sandru executed two schemes to defraud his clients. From December 2009-March 2011 he misappropriated at least $308,850 in purported “financial planning” fees from at least 47 clients, by forging their signatures or adding costs to engagement agreements after the clients had already signed them. Sandru failed to provide the promised financial planning services. These fees ranged from $500 to $5,000 and Cambridge paid 91%
    of these unauthorized fees by Cambridge.
  • Sandru’s second fraudulent scheme involved the misrepresentation of account balances. Beginning in at least 2008 (while Sandru worked for LPL Financial according to FINRA records) he lost money through trading in some client’s accounts. Sandru had told some of these clients, several of whom were elderly and retired, that they would be able to take substantial monthly withdrawals from their accounts for the rest of their lives or at least for many years. While at Cambridge, to conceal
    these losses, Sandru falsely represented to at least 6 clients, orally and in writing, that the account balances on the Cambridge statements were inaccurate and that they had other separate or “guaranteed ” accounts containing additional funds.
  • Sandru made these false misrepresentations to clients in order to induce them to allow him to trade their accounts and collect advisory fees from their dwindling account balances. Clients, relying on Sandru’s representations and encouragement, continued to make large monthly withdrawals, which further depleted their accounts.
  • Sandru liquidated securities, including money market funds in his clients’ accounts to cover the monthly withdrawals he had recommended. When certain client’s funds were completely exhausted, Sandru paid distributions our of his own pocket in an attempt to prevent discovery of his fraudulent schemes.
  • During the SEC investigation, Sandru refused to answer any questions, invoking his Fifth Amendment privilege against self incrimination.

We have been investigating Rick Sandru for the past year and currently represent a group of individuals who are seeking damages from the broker dealers who employed Mr. Sandru during the time he operated his fraudulent schemes.

For more information, see this.

If you are a victim of Richard Sanru’s fraud you may be able to recover damages.

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

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