• October 20, 2023
• Centaurus Financial

Michael Young Hamilton (CRD#: 2038138) is a registered investment advisor and broker at Centaurs Financial, Inc., in Fort Myers, FL.

Broker’s Background

Michael Hamilton entered the securities industry in 1992. He previously worked for J.P Turner & Company Capital Management, LLC; Gunnallen Financial, Inc.; Raymond James & Associates, Inc.; Prudential Securities Incorporated; Smith Barney Inc.; and Lehman Brothers Inc.

Allegations of Misconduct

According to publicly available information from the United States Securities and Exchange Commission (SEC), “the SEC alleges the Registered Representative potentially violated Rule 151-1(a) of the Securities Exchange Act of 1934, known as Regulation Best Interest, by failing to comply with the Care Obligation found in Rule 151-1(a)(2)(ii).” The regulatory investigation is still pending.

In addition, Michael Hamilton has been the subject of one other disclosure, which includes the following:

• August 2006—“ BREACH OF CONTRACT; BREACH OF FIDUCIARY RESPONSIBILITY; MISREPRESENTATION; NEGLIGENCE; SUITABILITY. THE GRANDDAUGHTER OF THE GRANTOR OF THE TRUST, QUESTIONS THE SUITABILITY OF INVESTMENTS AND LOSS OF PRINCIPAL IN THE ACCOUNT.” The damage amount requested was $15,000. The customer dispute settled for $5,000.

For a copy of Michael Hamilton’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.