According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Larry Templin (Templin), formerly associated with Centaurus Financial, Inc. (Centaurus) in Temple, Texas was terminated by his firm. In May 2018, Templin was terminated on allegations of bank fraud.
At this time it is unclear the nature or scope of the alleged OBAs and/or private securities transactions that Templin may have been involved in leading to the termination. Templin’s disclosures state a number of OBAs including Matthews, Ludwick, Templin & Montgomery PC which is disclosed as an accounting business. In addition, Structured Associates of Texas is listed as an annuity business. Flagstone Advisors is listed as an insurance business. Also 1949 Scott LLC is listed as a commercial real estate business.
Often accompanied with either disclosed or undisclosed OBAs is the risk of the sale of unapproved investment products – a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds. When advisors convert or misappropriate funds they often created businesses or other vehicles to serve as a cover for the theft of funds. However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Templin entered the securities industry in 1997. From September 2006 until May 2018 Templin was associated with Centaurus out of the firm’s Temple, Texas office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. Investors may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of selling away and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.