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Mark Spangler describes his investment firm, The Spangler Group, as an "environment of excellence, ethics and innovation." The "innovation" part may be true, to a

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Mark Spangler, Seattle Investor, Accused of Defrauding Customers and Losing $46 Million of Their Money

investment-fraud01.jpg
Mark Spangler describes his investment firm, The Spangler Group, as an "environment of excellence, ethics and innovation." The "innovation" part may be true, to a point. But the "excellence" and "ethics" part: not so much, according to the FBI.

Federal investigators have raided Spangler's $1.3 million Portage Bay home in an effort to find more evidence in what the FBI and the U.S. Securities and Exchange Commission says is a case that, at least, involves the gross mismanagement of customer investments, and, at worst, blatant fraud and money laundering.

According to an affidavit filed in King County Superior Court and unsealed today, the FBI believes Spangler defrauded investors of some $46 million.

The case rests mainly on evidence that shows Spangler put his clients' money into two companies he partly owns--TeraHop Networks and Tamarac, Inc--instead of investing them in a wide range of stocks and other securities.

Spangler had apparently reported assets of about $106 million this March. But later, a civil case that resulted in an audit showed that that number was off by at least $46 million and as much as $90 million--meaning that Spangler had lost a whole lot of money.

Losing money in the stock market, of course, isn't illegal.

But losing other people's money in the stock market because you invest it in your own failing companies without those other peoples' consent is illegal--so is lying about it to federal regulators.

Spangler has yet to formally be charged with a crime.

Read the full warrant and affidavit below.

Mark Spangler Affidavit

 
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