Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Gary Sauve (Sauve), previously associated with Centaurus Financial, INC., has at least 5 disclosable events. These events include 5 customer complaints, alleging that Sauve recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $150,000.00 on June 28, 2024.
The customers allege that in February 2019, the Registered Representative recommended and misrepresented an unsuitable, high-risk, illiquid investment and breached his fiduciary duty.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on November 15, 2023.
The customers allege that in 2020, the Registered Representative recommended an unsuitable, illiquid investment and breached his fiduciary duty.
FINRA BrokerCheck shows a settled customer complaint on September 27, 2023.
The customer alleges that the Registered Representative recommended an unsuitable, high-risk, speculative illiquid investment and breached his fiduciary duty. No specific dates for the alleged activity were identified in the Statement of Claim.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on September 19, 2023.
The customer alleges that in April of 2019, the Registered Representative recommended unsuitable, high-risk, speculative and illiquid investment and breached his fiduciary duty.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on June 29, 2023.
In September 2019, the customer alleges that the Registered Representative improperly recommended a high-risk and illiquid investment.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Sauve has been in the securities industry for more than 50 years. Sauve has been registered as a Broker with Centaurus Financial, INC. since 2015.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.