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