Centaurus Financial, Inc. is an independent national broker-dealer with its main office in Anaheim, California. This firm services over 18,000 customers throughout the United States. It is also a registered investment advisor. Centaurus became a full-service broker-dealer in 1995.
In 2022, Centaurus Financial has over 650 financial advisors and more than $10B in assets under management. Its branch offices are primarily one and two-person establishments where registered representatives are supervised remotely, which means there is no supervisor onsite.
Over the years, Centaurus Financial has become the subject of numerous regulatory claims. It also has been a respondent in several Financial Industry Regulatory Authority (FINRA) arbitration cases brought by customers seeking to recover losses caused by broker misconduct or negligence.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent investors in FINRA arbitration against Centaurus Financial. We are continuing to investigate other claims of losses by the firm’s current and former customers. Contact us online or call (800) 259-9010 today.Recent Regulatory Claims Involving Centaurus Financial
Some of the recent regulatory claims involving the broker-dealer Centaurus Financial include:
- June 2021: The Securities and Exchange Commission (SEC) ordered Centaurus Financial to pay more than $1.2M over alleged disclosure failures and misleading statements related to investment advice regarding cash sweep money market funds and mutual funds. This allegedly included not reporting undisclosed fees it received when recommending certain, costlier mutual fund class shares. Without denying or agreeing to the charges, the firm agreed to return funds to clients that were purportedly harmed.
- June 2016: FINRA censured the broker-dealer for not making sure its customers received proper discounts on unit investment trusts (UITs) in which they were eligible for such reductions. In addition to a $100K fine, Centaurus had to pay over $85K in restitution to allegedly harmed customers.
- January 2014: Centaurus Financial was fined $14K by FINRA for letting five of its registered representatives work as wholesalers for an unaffiliated investment firm.
- April 2009: FINRA fined Centaurus Financial $175K for allegedly not protecting certain confidential customer information. This purported failure enabled one person to conduct a “phishing” scam. Upon discovering the scheme to gather this confidential data, Centaurus allegedly conducted an “inadequate” investigation and sent a “misleading” letter to about 1400 customers that were impacted.
Over the years, Centaurus Financial has paid millions over claims brought by customers for losses involving real estate investment trusts (REITs), hedge funds, annuities, private equities, private placements, and even alleged elder financial abuse. Most recently, in 2022, the broker-dealer came under scrutiny as one of the regional brokers to have partnered with Emerson Equity to sell GWG Holdings L Bonds.
These high-yield bonds are now the subject of numerous FINRA arbitration claims in light of GWG’s Chapter 11 bankruptcy filing in April 2022. The Texas-based alternative asset firm had sold $1.6B of L Bonds to investors, owes bondholders millions of dollars, and is the subject of an SEC probe and at least one class-action lawsuit.
Some 145 regional broker-dealers forged agreements with managing brokerage firm Emerson Equity for a share of up to 8% in commissions from selling L Bonds. SSEK Law Firm has already filed a number of FINRA arbitration cases involving GWG L Bonds against several firms, including Centaurus Financial, such as:
- A six-figure L Bond investor claims on behalf of a Houston retiree who had never wanted to take on undue risk. L bonds are illiquid, speculative, and risky investments Centaurus allegedly unsuitably recommended to this elderly investor.
- A GWG L Bond securities case in which a retired Texas couple is requesting up to $500K damages and also alleging unsuitability. Their Centaurus Financial registered representatives, Michelle Anthony and Samuel Sutterfield are also the principals of Modern Wealth Management in Tucson, Arizona.
For over 30 years, SSEK Law Firm has been zealously fighting for investors in FINRA arbitration, mediation, and litigation against broker-dealers. We have recovered millions of dollars on behalf of thousands of clients, including retail investors, elderly retirees, wealthy investors, and institutional investors.
Call SSEK Law Firm at (800) 259-9010 to schedule your free, no-obligation case consultation.