The law offices of Gana Weinstein LLP is reporting on public disclosures on advisor David Crane (Crane), currently registered with Centaurus Financial, Inc. (Centaurus Financial) out of Dacula, Georgia. According to a BrokerCheck report, Crane has been subject to at least one customer dispute. In addition, Crane disclosed five tax liens during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Crane’s customer complaint concerns over variable annuity sales practices.
In March 2018 Crane disclosed a $131,644 tax lien against him. Prior to that, in November 2010 Crane disclosed a $34,101 tax lien against him. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.
In July 2004 a customer alleged that Crane provided negligent investment advice and breached his fiduciary duty concerning the purchase of a variable annuity. The amount of damages was not specified. The claim was settled for $225,000.
Variable annuities are complex financial and insurance products. In fact, the Securities and Exchange Commission (SEC) released a publication entitled Variable Annuities: What You Should Know encouraging investors to ask questions about the variable annuity before investing. Essentially, a variable annuity is a contract with an insurance company under which the insurer agrees to make periodic payments to you. The investor chooses the investments made in the annuity and value of your variable annuity will vary depending on the performance of the investment options chosen. The primary benefits of variable annuities are the death benefit and tax deferment of investment gains. However, the benefits of variable annuities are often outweighed by the terms of the contract that include exorbitant expenses such as surrender charges, mortality and expense charges, management fees, market-related risks, and rider costs.
According to newsources, a study revealed that 7.3% of financial advisors had a customer complaint on their record when records from 2005 to 2015 were examined. Brokers must publicly disclose reportable events on their BrokerCheck reports that include customer complaints, IRS tax liens, judgments, investigations, terminations, and criminal cases. In addition, research has shown a disturbing pattern with troublesome brokers where brokers with high numbers of customer complaints are not kicked out of the industry but instead these brokers are sifted to lower quality brokerage firms with loose hiring practices and higher rates of customer complaints. These lower quality firms may average brokers with five times as many complaints as the industry average.
Crane entered the securities industry in 1985. From December 2006 to December 2018, Crane was associated with Questar Capital Corporation. Since December 2018 Crane has been employed by Centaurus Financial out of the firm’s Dacula, Georgia office location.
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.