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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • SEC Files Order Vs. Richard P. Sandru 0 comments
    Apr 11, 2013 10:57 AM

    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.

    Robert Rex, Esq has represented investors in FINRA arbitrations and other securities actions for more than 20 years. If you have a question about your investment account call to speak with an experienced securities fraud attorney.

    Nationwide representation.

    Rex Securities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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