Former Seattle investment advisor Mark F. Spangler, 58, was sentenced to 16 years in prison today for wire fraud, money laundering, and investment advisor fraud. The U.S. Attorney’s Office announced the sentence, which also includes three years of supervised release and $19.8 million in restitution.
Spangler, who once promised his clients he would protect their life savings, is accused of diverting their money to risky start-up companies under his control without their knowledge or consent. His conviction followed a three-week trial in November 2013.
In U.S. District Court in Seattle, Judge Ricardo S. Martinez emphasized the gravity of Spangler’s actions, stating that he used clients’ trust against them in ‘a complete betrayal in the worst possible way.’
U.S. Attorney Jenny A. Durkan commented on the case, ‘Mark Spangler convinced his clients they were family and he would only do right by them. His wealth was built on lies and by defrauding those who trusted him.’
The evidence at trial showed that Spangler violated his fiduciary duty as an investment advisor by hiding where clients’ money was invested and providing false account statements. The loss to victims was approximately $50 million, with only about $28 million recovered after Spangler’s business collapsed.
Kenneth J. Hines of the IRS Criminal Investigation noted that ‘When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation.’ The FBI is committed to holding people like Spangler accountable, said Acting Special Agent in Charge W. Jay Abbott.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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