By Robert H. Rex, Esq.
In October 2013, Tracy Morgan Spaeth of Lubbock , TX, was arrested and charged with fraudulent sale of more than $100,000 in securities. Texas Securities Commissioner John Morgan suspended Spaeth's investment adviser registration in May 2013 and ordered him to pay back more than $90,000 in commissions. The suspension is in connection with the sale of interests in a private offering by an Arizona investment group, Hampton Capital Markets.
Hampton was offering a "low latency arbitrage strategy" that supposedly exploited inefficiencies in the prices of leveraged index exchange-traded funds by extremely high speed trading executions and touted returns of 10-50% according to the Texas State Securities Board. Spaeth, who most recently was owner of Uncommon Wealth Management, recommended that 31 clients invest in Hampton from July to September 2011.
The sale of more than $100,000 in fraudulent securities is a first degree felony and carries a potential prison sentence of life, or from 5 to 99 years.
Spaeth's official records on the FINRA BrokerCheck website indicate that he was registered with the following broker dealers during the time periods indicated:
- BrokersXpress LLC7/2009-12/2010
- LPL Financial 11/1999-7/2009
If you have questions about the way your brokerage account has been handled or feel you are the victim of securities fraud or negligence, call to discuss your legal rights.
561 391 1900
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.