Mark Spangler, a 57-year-old Seattle financial advisor who formerly served as head of the National Association of Personal Finance Advisors, was indicted today on 23 counts of fraud and money laundering. Spangler is accused of orchestrating a scheme between 2003 and 2011 in which he diverted $46 million in investor funds into two startup companies where he has personal interests: Terahop and Tamarac.
Investors were told that their money was being invested in publicly-traded companies and the funds were generating a “reasonable rate of return.” However, according to the 18-page indictment, $46 million was diverted to Terahop and Tamarac over an eight-year period.
“In order to conceal this fraudulent diversion of funds, Mark F. Spangler regularly provided the investors with statements which falsely and fraudulently represented that investors’ funds were substantially invested in publicly traded securities,” the indictment says.
“These investors lost millions to a man they trusted to safeguard their resources. We are working closely with the SEC to ensure Mr. Spangler is held accountable for his fraud,” said U.S. Attorney Durkan in a statement.
Based in Georgia, Terahop closed down last year and filed for bankruptcy. Seattle-based Tamarac, founded in 2000 by Spangler, sells investment portfolio management software. Spangler, who has not been arrested, will appear in federal court tomorrow at 2:30 p.m.
Here’s a look at the full indictment: