Sacramento-area financial adviser and radio show host Keith Springer denies SEC fraud charge

Sacramento radio show host and financial adviser Keith Springer, whose show “Smart Money” airs weekends on KFBK, said Monday that allegations of fraud filed against him by the Securities and Exchange Commission in federal court are “absolutely false.”

“It’s really David versus Goliath here,” Springer said in an interview with The Sacramento Bee. “I’m just an easy headline for them.”

The SEC filed civil charges against Springer, 55, owner of Sacramento-based Springer Financial Advisors, alleging Springer and his business “have engaged in a pattern of deceptive conduct specifically targeted at retirees and near-retirees,” the complaint said.

The 18-page complaint alleges that Springer misrepresented his financial expertise, concealed his disciplinary history with the New York Stock Exchange and SEC from clients, and received millions of dollars of undisclosed compensation for recommending investments without disclosing a conflict of interest.

“Our complaint alleges that Springer actively targeted vulnerable retirees by misleading them about his prominence in the industry and promising to act in their best interests,” SEC San Francisco regional director Erin E. Schneider said in a prepared statement. “Investment advisers must be truthful about their background and fully disclose all conflicts of interest.”

Advertisements for his company allegedly misinformed potential clients by falsely claiming Springer wasn’t paid to promote particular investment opportunities, according to the SEC.

Springer adamantly denies the allegations, saying he had been working with the SEC for years to correct “technical bookkeeping type things,” and disclosed his disciplinary history to all his new clients.

Since 1985, Springer has worked as a registered investment representative for a number of broker-dealer firms, but in 1999, the New York Stock Exchange barred him from membership and disallowed him to work for any member organization for four years, according to the SEC.

Stock exchange records show that Springer was accused of improperly allocating trades to appear more favorably.

Springer said he could not discuss the disciplinary action in detail.

He also denies that he ever accepted commissions or incentives in excess of the norm, he said.

“I never didn’t do what they asked us to do to rectify a situation,” Springer said.

The SEC alleged that many of the victims were drawn to Springer through his radio show on KFBK, which Springer said he was chosen for because of his years of industry knowledge. In the complaint, the SEC alleges Springer paid to get on the air.

Springer said he has never paid to have his show on the air, and that his broadcasting slot was earned over 10 years through his show’s success.

“It’s very frustrating and very heartbreaking,” he said.

This story was originally published December 24, 2019 at 11:20 AM.