The Securities and Exchange Commission recently barred a California-based registered investment advisor from the industry.
Keith Springer and his firm, Springer Financial Advisors, agreed to the bar to settle charges with the SEC that he’d defrauded hundreds of retail clients, including many investors at or near retirement. In addition to the bar, he agreed to pay more than $400,000 in penalties.
The advisor and his firm first were charged by the commission in December 2019. According to the original complaint, Springer solicited investors through deceptive marketing practices, including ads that misstated his expertise, resources and whether he received financial incentives to make certain recommendations.
Springer claimed he’d been selected as the host of his radio show, “Smart Money with Keith Springer,” based on his expertise, while not disclosing he paid for the time. Springer also touted himself as a “Qualified Retirement Advisor,” though no such designation exists, according to the commission.
The commission also argued Springer advised clients to purchase certain annuities without disclosing that he’d get a higher upfront commission for those purchases; between July 2014 and the charges in 2019, Springer’s firm made more than $6 million from compensation and bonuses for annuity sales. Springer also benefited from additional compensation when he directed clients into certain investment portfolios, in which an unnamed asset manager charged less, allowing Springer to pocket the difference, according to the SEC.
Additionally, Springer allegedly tried to hide prior SEC charges, as well as his troubling disciplinary history with the New York Stock Exchange (in 2005, Springer settled with the SEC over charges that he’d misrepresented the performance of a certain hedge fund to clients), from clients. Springer went as far as to spend tens of thousands of dollars on “internet search suppression consultants” so that the previous SEC charges would not appear to investors investigating his business.
“For instance, Springer instructed the consultants to use ‘all resources’ to ensure that the SEC’s 2005 Order would not appear on the first page of results when someone conducted a Google Search for Springer and (Springer Financial Associates),” the 2019 complaint read.
Springer did not return requests for comment.
In agreeing to the settlement, Springer did not admit or deny the commission’s charges.