• February 10, 2023
• Centaurus Financial

John Starke, Sr. (CRD#: 3154774) is a registered Broker at Centaurus Financial, Inc. in Mechanicsville, VA.

Broker’s Background

He entered the securities industry in 1999 and previously worked for Financial West Group; Cabot Lodge Securities, LLC; Allied Beacon Partners, Inc.; American Beacon Partners, Inc.; Newbridge Securities Corporation; First Montauk Securities Corp.; Intersecurities, Inc.; and NYLife Securities, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2022, a customer dispute was opened against John Starke. The allegation states, “In November 2020, the customers allege that the Registered Representative recommended an unsuitable and illiquid investment.” Damages of $50,000 are sought, and the customer dispute is pending.

In addition, John Starke has been the subject of seven customer complaints, including two that remain pending, including the following:

• September 2022 — “In or about August 2020, the customer alleges that the Registered Representative surrendered a life insurance policy triggering a tax liability.” Damages of $144,283 are requested, and the customer dispute is pending.
• July 2022 — “The customers allege that the Registered Representative improperly recommended high-risk, high commission and illiquid investments. No dates of alleged activity were disclosed in the Statement of Claim.” Damages of $320,000 are requested, and the customer dispute is pending.
• July 2012 — “ALLEGATIONS, AS STATED IN THE COMPLAINT, SUITABILITY ISSUES SURROUNDING THE PURCHASE OF THREE REITS. THE REITS WERE PURCHASED IN JULY 2010.” The customer dispute was denied.
• May 2005 — “CUSTOMER ALLEGES LOSSES AND PURCHASE OF QUESTIONABLE SECURITIES IN HER ACCOUNT.” The customer dispute was settled for $57,000.
• January 2003 — “CUSTOMER ALLEGES EXCESSIVE TRADING IN THE HANDLING OF THEIR ACCOUNT.” The customer dispute was settled for $100,000.
• February 2002 — “THE CUSTOMER STATES HS IS A NEOPHYTE INVESTOR AND ALLEGES HE WAS PLACED IN HIGH RISK INVESTMENTS WITH NO DIVERSITY.” The customer dispute was settled for $23,068.
• February 2001 — “CUSTOMER ALLEGES THAT STARKE PLACED UNAUTHORIZED TRADES AND THAT A MARGIN OPTION ACCOUNT WAS OPENED WITHOUT HER CONSENT OR KNOWLEDGE WHICH SHE DISCOVERED IN JANUARY 2001 AFTER THE ACCOUNT BEING OPEN FOR A YEAR.” The customer dispute was settled for $16,000.

For a copy of John Starke’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisers 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 advisers’ 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 adviser 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 adviser 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 adviser 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, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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.