Centaurus Financial has been the recipient of multiple FINRA actions, including 11 regulatory events and 8 reported arbitration claims. Not all of these are major issues, but they could be relevant to an investor doing business with Centaurus.
The SEC has strict rules about how a broker-dealer operates, runs their business and keeps records; any variation from these rules can trigger a sanction or other regulatory process. Centaurus has been the subject of multiple sanctions for various infractions and disputes filed by customers. For these regulatory sanctions, the company has paid $532,156.62 in penalties, fines and fees over the years. In some cases, there were no financial products involved or sold, only regulatory violations.
Centaurus has paid out $3,064,930.66 in securities arbitration awards and judgments.
Since 2010, Centaurus has been involved in these FINRA or State regulatory events including:
- FINRA censured Centaurus on June 23, 2016, and levied a fine of $100,000 against the company for failing to ensure that customers received appropriate sales charge discounts on eligible UIT (unit investment trust) purchases. The company relied on brokers to apply these discounts, but did not have a check system in place to insure the discounts were applied. FINRA also required the firm to pay restitution to affected customers in the amount of $85,281.62. The firm repaid the affected clients in full before requested by FINRA.
- FINRA levied a $25,000 fine against Centaurus on 01/26/2014 for allowing five of their registered representatives to function as wholesalers for an unaffiliated investment management firm. The firm consented to the findings and neither admitted nor denied them. The fine was paid in full on 02/27/2014.
- The Indiana Securities Division alleged that Centaurus failed to supervise the actions of an agent, primarily supplying false information to the agency. The matter was initiated on 05/09/2012. The representative filed an incorrect residential address on her form U4. The firm has since terminated the registered representative and the case was dismissed and resolved on 12/31/2013.
- The State of Nevada’s Securities Division initiated an action when the company violated a provision of a “special supervision agreement” that it entered into for one of its representatives when they failed to notify the state of the rep’s change in supervision. It was required to notify the division in writing within ten calendar days of the change.
- FINRA censured and fined Centaurus on 08/25/2010 for failing to report the correct time of trade to their real-time transaction reporting system (RTRS) for transactions of municipal securities as required in Rule G-14. The firm failed to report transaction information in the required 15-minute time frame of the trade in the RTRS system. The firm’s supervisory system wasn’t completely compliant with applicable securities laws and regulations, as well as MSRB rules concerning the reporting of municipal securities. Centaurus was censured and fined $10,000, and was required to revise its written supervisory procedures about municipal securities transactions within 30 days. Centaurus neither admitted nor denied the FINRA findings, and consented to the sanctions.
Centaurus has also been the subject of several disputes that were settled through FINRA or securities arbitration, involving substantial financial judgments and awards.
- A FINRA arbitration claim that included allegations of account misrepresentation, omission of facts, failure to supervise and other related negligence in a case initiated on 8/8/2014. Annuities, hedge funds, limited partnerships, private equities, REITs and variable annuities were involved, and the parties requested relief of $1,500,000. The firm was ordered to pay compensation to one of the parties in the arbitration a total of $150,600.01. Centaurus was also assessed a number of additional associated fees, including $14,100.00 for hearing fees. The date of the case disposition was 06/30/2016.
- In another case, a customer alleged damages or losses from a REIT (real estate investment trust) that included allegations of breach of fiduciary duty, misrepresentation and omission of facts, suitability, breach of contract, failure to supervise and other related negligence. This case was initiated on 10/10/2013, with relief requested in the amount of $1,000,862.01. FINRA awarded the parties a total of $915,248.96, a combination of 7 investments. Centaurus was also assessed a number of charges related to the hearing, including $14,400.00 for hearing fees.
- In a case brought against Centaurus on 5/14/2012, a FINRA arbitration with parties against Centaurus that included allegations of ) violations of the Virginia Securities Act and other Blue Sky statutes, breach of fiduciary duty, misrepresentation, omission of facts and other account related issues. Additionally, allegations of failure to supervise and other negligence were included. The parties requested relief of $900,000.00. FINRA awarded compensatory damages of $803,295.51 among the claimants. Centaurus was charged a number of hearing-related fees, including hearing session fees of $16,050 00. The case’s disposition date was 07/16/2013.
- On 12/11/2011, FINRA was requested to arbitrate a dispute over allegations of breach of fiduciary duty, suitability and other account related negligence against Centaurus involving common stock. The nine claimants sought “unspecified damages,” and were awarded a collective total of $186,544.01. Centaurus was charge several hearing-related fees, including hearing session fees of $10,000. The case’s disposition date is 03/01/2013.
- In another dispute, a case was initiated on 11/11/2010 against Centaurus over annuities, and FINRA was requested for arbitration. Allegations included misrepresentation, omission of facts, suitability and elder abuse under §15610.30 of the California Welfare and Institutions Code. The dispute involved the Claimant’s purchase of Golden American Life Insurance Company annuity contracts, and requested damages of $129,000. The disposition date was 09/19/2011, and the damages awarded to the claimants totaled $42,477.01. Centaurus was also assessed $9,000 in hearing-related fees.
- On 2/26/2010, an arbitration case involving common stock against Centaurus. These allegations included breach of fiduciary duty, failure to supervise, and other account-related negligence. The allegations were related to investments in Liberty Financial Associates, Inc. The claimant also amended her statement to include civil theft as a n additional cause of action. The claimant sought relief of $199,658.82. Of the $11,700 hearing session fees related to the arbitration, the FINRA panel assessed $5,850 to both the claimant and the respondents. The disposition date of the case is 08/02/2011.
- A FINRA arbitration claim on 02/12/2010 against Centaurus involving “other types of securities” was filed. These allegations include breach of fiduciary duty, misrepresentation, omission of facts, suitability, breach of contract, failure to supervise and other related negligence involving a registered representative. Claimants presented 15,000 documents in the case, and requested relief in the amount of $435,000.00. The award for relief totaled $213.485.83. Hearing fees totaled $15,300.00.
If you’ve done business with Centaurus Financial and believe you have suffered losses because of unsuitable investments, call us. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Scott Silver is a leading attorney in securities arbitration and has extensive experience representing investors in claims for unsuitable investments, illiquid REITs, private placements and real estate investment fraud. Most cases handled on a contingent fee basis. You won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.