Investor Files Six-Figure Alternative Investment Loss Claim Against Centaurus Financial
Centaurus Broker William “Bill Burks” Pursued Southwest Airlines Attendants As Clients
Shepherd Smith Edwards and Kantas alternative investment loss recovery law firm (investorlawyers.com) is seeking up to $500,000 in damages from Centaurus Financial for losses sustained by an investor who was sold non-traded real estate investment trusts (non-traded REITs) and other alternative investments, including:
- Moody National REIT
- MacKenzie Realty
- American Hospitality Properties III
- Tasty Brands, LP
- Waveland Resource Partners, LP
These were illiquid, risky investments that were unsuitable for this Houston, Texas investor, who was planning for his retirement.
Our Client is a Southwest Airlines flight attendant who worked with Centaurus financial advisor William “Bill” Charles Burks II. The Flower Mound, Texas, investment advisor and stockbroker was recently suspended by the Financial Industry Regulatory Authority (FINRA) for purportedly unsuitably recommending a high concentration of illiquid alternative investments, including non-traded REITs, interval funds, and business development companies (BDCs), to clients.
This Texas investor rolled over his 401K into an IRA account at Centaurus at Burks’ advice. In his FINRA lawsuit, our Client is alleging unsuitability, breach of fiduciary duty, misrepresentations and omissions, breach of contract, negligence, gross negligence, and more.
He contends that Burks claimed to be able to double clients’ money every five years. He is accusing the broker of gaining his trust by reminding him that they shared a Christian faith. Burks also would give this investor his financial advisor brochures and ask him to leave them where other Southwest Airlines flight attendants would see them.
This Claimant heavily relied on this Centaurus Financial advisor to keep him abreast of his investments. Burks allegedly abused this investor’s trust by buying high-risk, high-commission alternative investments for him and then lying about the value and performance of the investments. This purportedly involved concealing the actual value of these alternative investments, including when they were performing poorly. In fact, many of the investments that his investor was led to believe were doing well became nearly worthless and stopped paying dividends.
Why Do Independent Brokerage Firms Like to Sell Alternative Investments Even When Unsuitable For Customers?
These kinds of investments, including non-traded REITs, are only suitable for experienced investors. They are typically sold by “independent” brokerage firms like Centaurus, which usually earn up to 8% in upfront commissions, in addition to a due diligence fee of around 3%. The fact that brokers at independent broker-dealers can get paid up to 90% of the commissions only incentivizes these firms to sell more of these investments in order to also make enough money.
William Burks II’s BrokerCheck CRD states that he has worked in the industry for 28 years. Also listed on his record are several other customer disputes. Two of the cases, alleging unsuitability of illiquid investments, remain pending. Three other investor lawsuits each resulted in six-figure settlements for the claimants.
Representing Investors Against Centaurus Financial
Our alternative investment loss recovery law firm continues to represent many investors against Centaurus Financial over the negligent and wrongful actions of their brokers. With our team of savvy securities lawyers, legal assistants, consultants, and others, we know how to maximize each of our clients’ chances for full financial recovery, whether in arbitration, mediation, and litigation.
Shepherd Smith Edwards and Kantas has helped thousands of investors to collectively secure many millions of dollars in awards and settlements from broker-dealers and investment advisors. To schedule your free case consultation call (800) 259-9010 today or fill out this online contact form today.