William Sandeman Lawsuit | Wedbush Broker Barred by FINRA
The White Law Group is investigating potential claims involving William Henry Sandeman (CRD# 831384), a former Wedbush Securities broker in Seattle. Here is what is on his record and what your options may be.
FINRA has barred Sandeman from the securities industry. FINRA found that he allegedly recommended risky volatility-linked and leveraged exchange-traded products to 81 retail customers as long-term investments. Those customers allegedly lost more than $3.5 million. If you invested with Sandeman, our FINRA arbitration attorneys can review your account for free.
William Sandeman Lawsuit Investigation: FINRA Bar
Sandeman agreed to a bar from associating with any FINRA member firm in all capacities. The bar took effect October 5, 2026. He settled without admitting or denying FINRA’s findings. FINRA also found that he willfully violated Regulation Best Interest. Under that rule, a broker must act in the customer’s best interest when recommending an investment.
What FINRA Found
From December 2020 to January 2025, Sandeman allegedly told 81 retail customers to buy and hold volatility-linked and non-traditional exchange-traded products. Most of those customers had conservative or moderate risk tolerances, and 59 were seniors. Some customers held the products for nearly four years.
FINRA found that Sandeman did no research on these products and did not read their prospectuses. One prospectus warned that investors who held the product long term were “likely” to “lose all or a substantial portion” of their investment. As of January 2025, his customers had more than $3.5 million in realized losses.
Wedbush Fired Sandeman in January 2025
Sandeman worked at Wedbush Securities in Seattle from December 2000 to January 2025. On January 7, 2025, Wedbush reported that it terminated him due to a “lack of confidence related to performance.” FINRA’s case came out of an examination of Wedbush.
Customer Complaints Against William Sandeman
In October 2024, a customer complained about losses in exchange-traded fund and note holdings and requested $350,000. That dispute settled for $30,000. His BrokerCheck record also shows three older customer disputes from 2006 to 2014. They allege overconcentration, unauthorized purchases and excessive trading. Sandeman denied those allegations.
Sandeman had 48 years in the industry. Before joining Wedbush, he was registered with PaineWebber, Oppenheimer & Co., Drexel Burnham Lambert, and Foster & Marshall.
Recovering Losses Tied to William Sandeman
Investors who lost money on volatility-linked or leveraged exchange-traded products recommended by Sandeman may be able to recover their losses through FINRA arbitration. A claim can name Wedbush Securities as well as Sandeman. A FINRA bar does not repay customers, so a claim is how investors seek their money back.
Contact The White Law Group
The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. If you invested with William Sandeman and suffered losses, call (888) 637-5510 or contact us online for a free consultation. You can also learn more on our FINRA arbitration attorney page.
Frequently Asked Questions
1. How do I file a claim to recover money I lost with William Sandeman?
Most investors file a claim through FINRA arbitration rather than a court lawsuit. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know about. Arbitration can still result in a monetary award, and an attorney can tell you whether you have a claim.
2. Why are volatility-linked and leveraged exchange-traded products risky to hold long term?
They are built for short-term trading, often a single day, not buy-and-hold investing. Volatility products track futures contracts that must be rolled over, which tends to drain value over time. Leveraged and inverse products reset daily, so their returns over weeks or months can differ sharply from the index they follow. FINRA has warned since 2009 that these products are typically unsuitable for retail investors who hold them for more than one trading session.
3. Can Wedbush Securities be held responsible for my losses?
Yes, it can. Brokerage firms must supervise their brokers, including the products they recommend and how long customers hold them. If Wedbush failed to catch years of unsuitable recommendations to conservative and senior customers, it may be liable for failing to supervise.
