Articles Tagged with Centaurus Financial

shutterstock_112866430-300x199According to BrokerCheck records financial advisor Ricky Mantei (Mantei), currently employed by Centaurus Financial, Inc. (Centaurus Financial) has been subject to eight customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Mantei’s customer complaints allege that Mantei made unsuitable recommendations in certain corporate debt or other securities.

In November 2018 a customer alleged that the financial advisor recommended unsuitable investments and several other allegations. The complaint alleges $100,000 in damages and is currently pending.

In October 2018 a customer filed a complaint alleging that their investments were unsuitable based on their investment objectives.  The claim alleges $233,238,000 in damages and is currently pending.

In May 2018 the beneficiaries of a deceased customer allege that the Mantei recommended the client make unsuitable investments.  The claim alleges $100,000 in damages and is currently pending.

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shutterstock_128856874-300x200According 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.

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shutterstock_71240-300x183According to BrokerCheck records financial advisor Cindy Chiellini (Chiellini), currently employed by Centaurus Financial, Inc. (Centaurus Financial) has been subject to four customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Chiellini’s customer complaints allege that Barber made unsuitable recommendations in certain corporate debt or other securities.

In August 2018 a customer alleged that investments in their account had less liquidity than they originally instructed the broker they desired resulting in a loss of principal.  The complaint alleges $175,000 in damages and is currently pending.

In June 2018 a customer filed a complaint alleging that investments presented and executed by the broker were not suitable.  The claim alleges $5,000 in damages and is currently pending.

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shutterstock_185901806-300x200Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Bryon Martinsen (Martinsen) currently associated with Centaurus Financial, Inc. (Centaurus) alleging unsuitable investments, breach of fiduciary duty, misrepresentations, and fraud among other claims.  According to brokercheck records Martinsen has been subject to five customer complaints, one judgment or lien, and one employment termination for cause.  Many of the complaints involve direct participation products (DPPs) such as non-traded real estate investment trusts (REITs) and other alternative investments.

Our firm has experience representing investment fraud victims with these investments against Centaurus.  See Gana Weinstein LLP Wins Arbitration Award On Behalf of Client Against Centaurus Financial.  In that case, the Claimant alleged that the broker involved invested over $2,000,000 in exclusively high cost products and 50% of those investments were in alternative investments such as private placements, oil and gas partnerships, and REITs.  The other 50% was invested in variable and equity-indexed annuities.  Award Can Be Found Here.

All of these investments come with high costs and have historically underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them and have created a large market for a failed product.  Further, investor often fail to understand that they have lost money in these illiquid investments until many years after investing.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

shutterstock_70999552Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against financial advisor Troy Tremblay (Tremblay) currently registered with Centaurus Financial, Inc. (Centaurus), alleging unsuitable investments, fraud, breach of fiduciary duty, negligence, and unfair business practices among other claims.  According to brokercheck records Lambert has been subject to three customer complaints, two judgement/liens, and one financial disclosure.

In May 2014 Tremblay disclosed a tax lien of $43,280.84.  In February 2014 Tremblay disclosed another tax lien of $59,670.74.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

In May 2014 a customer filed a complaint alleging that Tremblay caused the customer $932,810 in damages stemming from a tenant in common (TIC) investment.  The claim was resolved for $315,000.

shutterstock_54385804Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against David White (White) currently associated with Centaurus Financial, Inc. (Centaurus) alleging unsuitable investments and breach of fiduciary duty among other claims.  According to brokercheck records White has been subject to eleven customer complaints.  Many of the complaints involve direct participation products (DPPs) such as non-traded real estate investment trusts (REITs) and other alternative investments.

Our firm has experience representing investment fraud victims with these investments against Centaurus.  See Gana Weinstein LLP Wins Arbitration Award On Behalf of Client Against Centaurus Financial.  In that case, the Claimant alleged that the broker involved invested over $2,000,000 in exclusively high cost products and 50% of those investments were in alternative investments such as private placements, oil and gas partnerships, and REITs.  The other 50% was invested in variable and equity-indexed annuities.  The panel found that “the investments Hashemian recommended while at Centaurus were not suitable and in [Claimant’s] best interests. [Claimant] also provided sufficient evidence to meet her burden of proof to support her allegations in her Statement of Claim that the actions by Hashemian, for which Centaurus is responsible, constitute fraudulent and negligently made material misrepresentations and omitted material information in the sale of the investments to [Claimant].”  Award Can Be Found Here.

Our firm has represented many clients in illiquid alternative investments products.  All of these investments come with high costs and have historically underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them and have created a large market for a failed product.  Further, investor often fail to understand that they have lost money in these illiquid investments until many years after investing.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

shutterstock_174858983Our investment attorneys are interested in speaking with investors who may have been sold inappropriate alternative investments by Cheryl Kitashima (Kitashima).  Customers have filed complaints with The Financial Industry Regulatory Authority (FINRA) against Kitashima alleging unsuitable investments, breach of fiduciary duty, common law fraud, and misrepresentations among other claims.  According to brokercheck records Kitashima has been subject to five customer complaints.  Some of the complaints involve direct participation products (DPPs), variable annuities, oil and gas investments, non-traded real estate investment trusts (REITs), and other alternative investments.

Our firm has represented many clients in these types of products.  All of these investments come with high costs and have historically underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them and have created a large market for a failed product.  Further, investor often fail to understand that they have lost money in these illiquid investments until many years after investing.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

Kitashima entered the securities industry in 1981.  Since June 2005 Kitashima has been registered with Centaurus Financial, Inc. out of the firm’s Bellevue, Washington office location.

shutterstock_175298066The securities lawyers of Gana Weinstein LLP are pleased to announce an award on behalf of their client against Centaurus Financial, Inc. (Centaurus) in the amount of $150,000 plus costs.  The complaint was filed The Financial Industry Regulatory Authority (FINRA) and involved multiple brokerage firms that hired advisor Ahmad Hashemian.

The Claimant alleged that Hashemian invested over $2,000,000 in exclusively high cost products and 50% of those investments were in alternative investments such as private placements, oil and gas partnerships, and non-traded real estate investment trusts (REITs).  The other 50% was invested in variable and equity-indexed annuities.  All of these investments come with high costs and historically have underperformed even safe benchmarks, like U.S. treasury bonds.  Brokers, enticed by the high commissions, often times misled their clients into investing in these products.

In this case the panel found that “the investments Hashemian recommended while at Centaurus were not suitable and in Margaret Polito’s best interests. Margaret Polito also provided sufficient evidence to meet her burden of proof to support her allegations in her Statement of Claim that the actions by Hashemian, for which Centaurus is responsible, constitute fraudulent and negligently made material misrepresentations and omitted material information in the sale of the investments to Margaret Polito.”  Award Can Be Found Here.

shutterstock_182371613The securities lawyers of Gana Weinstein LLP are investigating a customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Robert Cannon (Cannon).  According to BrokerCheck records Cannon has been subject to at least four customer complaints.  The customer complaints against Cannon alleges securities law violations that including unsuitable investments, negligence, fraud, and breach of fiduciary duty among other claims.

Many of the complaints involve direct participation products (DPPs) and private placements including oil and gas partnerships, non-traded real estate investment trusts (REITs), and other alternative investments.  In a FINRA regulatory action Van Patter was found to have onverconcentrated an investor in alternative investments.

Our firm has represented many clients in these types of products.  All of these investments come with high costs and historically have underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them.  Further, investor often fail to understand that they have lost money until many years after agreeing to the investment.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

shutterstock_191231699The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Marcious Dickerson (Dickerson). According to BrokerCheck records Dickerson has been the subject of 3 customer complaints. The customer complaints against Dickerson allege securities law violations that including unsuitable investments, misrepresentations, and breach of fiduciary duty among other claims.   Many of the most recent claims involve allegations concerning non traded real estate investment trusts (Non-Traded REITs).

As a background since the mid-2000s Non-Traded REITs became one of Wall Street’s hottest products. However, the failure of Non-Traded REITs to perform as well as their publicly traded counterparts has called into question if Non-Traded REITs should be sold at all and if so should there be a limit on the amount a broker can recommend. See Controversy Over Non-Traded REITs: Should These Products Be Sold to Investors? Part I

Non-Traded REITs are securities that invest in different types of real estate assets such as commercial, residential, or other specialty niche real estate markets such as strip malls, hotels, storage, and other industries. Non-traded REITs are sold only through broker-dealers, are illiquid, have no or limited secondary market and redemption options, and can only be liquidated on terms dictated by the issuer, which may be changed at any time and without prior warning.