The Frankowski Firm is continuing its investigation of Leavitt Sanders and the firms with which he has been associated as further allegations surface against them. John D. and Maxine S. Bankston of Lilburn, Georgia have accused financial adviser Leavitt Sanders of fraud and numerous securities violations. The couple, who are in their eighties, filed their claims with FINRA alleging that Sanders mismanaged and churned their securities accounts by trading excessively in high-risk investments, which included put and call options on futures contracts and day-trading massive stock positions on margin.
The Bankstons’ statement of claim asserts that “Mr. Sanders used a ‘one size fits all’ investment strategy with all of his clients, including the Bankstons, without regard to whether it was prudent or suitable.” According to the SEC, Sanders managed $30 million in about 200 investor accounts.
Triad Advisors, Inc., with whom Sanders was previously associated, fired Sanders on December 26, 2014. According to FINRA records, as of February 16, 2015, Sanders had fourteen customer complaints regarding allegations of account mismanagement.
The Bankstons’ attorney stated, “The Bankstons told Mr. Sanders that they needed income and did not want to take any unnecessary risks. Instead, he exposed their nest-egg to high-risk, speculative day trading, and options and futures investments.”
The Bankstons’ claim alleges violations of Georgia Blue Sky Laws; breach of fiduciary duty; common law fraud; constructive fraud; negligent misrepresentation; breach of contract, breach of duty, negligence; unsuitable trading; failure to supervise, and churning. They are seeking well-managed account damages, disgorgement of commissions, punitive damages, attorney’s fees, and interest.
If you or someone you know has lost money as a result of an investment with Leavitt Sanders, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.