Mark Spangler (“Spangler”), the former chairman of the National Association of Personal Financial Advisors (“NAPFA”) has been indicted by a federal grand jury for investment advisor fraud, wire fraud and money laundering. The indictment alleges that Spangler stole $47.7 million of his clients’ money and invested it in two technology companies the he or his firm, The Spangler Group, Inc., owned. In addition to the pending criminal charges, the Securities and Exchange Commission (“SEC”) announced that it has filed a civil complaint against Spangler.
Spangler was chairman of NAPFA in 1998. NAPFA is professional association of fee-only financial advisors. NAPFA issued a statement condemning the actions identified in the indictment and SEC complaint. NAPFA suspended Spangler’s membership in October, when the Federal Bureau of Investigation commenced its investigation into Spangler’s conduct.
According to the SEC, Spangler told investors that he would invest their money in publically traded companies and bonds, when, in fact, he had used the clients’ money to invest in two start-up companies, one of which is now bankrupt. The SEC claims Spangler created false account statements and could not give the clients any funds when they asked to liquidate their holdings.
According to the SEC’s complaint, Spangler invested $42 million of his clients’ money in now defunct TeraHop Networks, Inc., a Georgia-based manufacturer of wireless devices; and $5.7 million in Tamarac, Inc., a provider of portfolio management software.
The Florida securities lawyers at McCabe Rabin, P.A. represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.