Category Archives: Eric Douglas

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

Former Sandru/LPL/Cambridge Brokers Face Suspension

In April 2012, the Ohio Division of Securities filed Notices of Intent to
suspend or revoke the licenses of two  investment advisers/stockbrokers who practiced in the Toledo/Perrysburg area.

Eric M. Douglas and Mark Pantenburg  have been accused of engaging in manipulative or deceptive practices in connection with investments in Maumee
Authority Stamping, Inc. (MAS). Keith Obey, president of Maumee was attempting to revive a Ford parts- stamping factory and raised a million or more dollars from investors, including clients of Douglas and Pantenburg. The standard investment was $16,000. 

Both Douglas and Pantenburg formerly worked for LPL Financial, where they did business as Sandru Financial Group,  in 2008 when the MAS investments were made. They both moved to Cambridge Investment Research in the summer of 2009. Douglas is charged with making improper sales to six people and Pantenburg is charged with one improper sale.

In connection with these sales, the Ohio Division of securities allege that Douglas & Pantenburg each: 

  • failed to conduct due diligence on MAS before encouraging clients to
    invest in the company.

  •  failed to disclose  their
    lack of due diligence,

  • falsely assured clients their investments in
    MAS would be safe, and

  • failed to fully inform clients how their
    investments would be held and handled by LPL. 

According to
the orders issued in April, they were scheduled to go
into effect 30 days from the date they were mailed unless the brokers
subject to the orders requested a hearing. A recent check of the website
indicates a final order has not yet been entered.
The orders & status of the proceeding may be viewed here.

Douglas and Pantenburg worked at LPL and next at Cambridge Research Investments with Rick Sandru, a broker who was barred by FINRA in March 2012 for collecting hundreds of thousands of dollars in unauthorized financial planning fees which he converted to his personal use. You can read more about our investigation of Mr. Sandru as well access the FINRA order by going here

If you have information which you think may be helpful to our investigations, we would appreciate hearing from you. We have been helping investors recover investment losses for more than twenty years.

Nationwide representation.

Free consultation.

Rex Securities Law

561 391 1900