Mark F. Spanler, Ponzi Scheme, Seattle WA, 2023

Former Seattle investment advisor Mark F. Spanler, 58, was convicted today by a federal jury of 32 criminal counts, including wire fraud, money laundering and investment advisor fraud. Spanler, who now resides in Portland, Oregon, promised his clients that he would protect their life’s savings by investing it in safe investments.

In a shocking betrayal of trust, the jury heard how Spanler diverted clients’ money to risky start-up companies he controlled, without their knowledge or consent. The scheme resulted in a staggering loss of approximately $50 million for victims who trusted him with their mortgages, education funds, and retirement savings.

U.S. Attorney Jenny A. Durkan emphasized the gravity of Spanler’s crime, stating that he gambled with other people’s money and defrauded friends and family members who had entrusted him with their life savings. The trial revealed that Spanler provided false account statements, drastically inflating the value of clients’ investments to over $73 million, when only approximately $28 million was recovered.

Spanler also operated a Ponzi scheme using new investors’ money to pay out existing ones, ultimately leading to his business’s receivership. The FBI and IRS played crucial roles in disrupting Spanler’s plans to flee the jurisdiction by executing a search warrant at his residence on September 23, 2011.

Special Agent-in-Charge Kenneth J. Hines of the IRS Criminal Investigation highlighted the greed that overruled honesty in this case, emphasizing the serious nature of investment advisor fraud and the commitment of federal law enforcement to hold such criminals accountable. Spanler faced a sentence on February 6, 2014, for his fraudulent activities.