The Financial Industry Regulatory Authority recently barred former Wedbush Securities broker William H. Sandeman following allegations that his investment recommendations cost retail investors more than $3.5 million.

According to a settlement finalized in October 2026, FINRA alleged that Sandeman recommended complex, volatility-linked, and non-traditional exchange-traded products (ETPs) to 81 retail investors. FINRA claimed Sandeman made these recommendations between December 2020 and January 2025 without fully understanding the risks and without properly considering his customers’ investment profiles.

Complex ETPs are highly speculative and often unsuitable for retail investors looking for long-term growth or capital preservation. Recommending these products to clients who do not understand them can result in massive, rapid portfolio deterioration.

Investors who relied on Sandeman’s recommendations may have grounds to seek recovery. A brokerage firm like Wedbush Securities has a duty to supervise its representatives and ensure that all recommendations comply with Regulation Best Interest. When a firm fails to prevent unsuitable, high-risk trading, it can be held liable for customer losses.

If you lost $100,000 or more investing in complex ETFs or ETPs with William Sandeman or Wedbush Securities, contact Sonn Law for a confidential review of your legal options.

Sources: (AdvisorHub October 2026 Report: ADVISORHUB) (FINRA BrokerCheck: FINRA)