- June 14, 2022
- Centaurus Financial
Otto Bohon (CRD#: 5677597) is a previously dually registered Broker and Investment Advisor.
He entered the securities industry in 2009 and previously worked for Centaurus Financial, Inc.; Wells Fargo Advisors, LLC; and Wells Fargo Investments, LLC.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2021, a customer dispute was filed against Otto Bohon. The allegation states, “During the period 2014 through 2016, the customer alleges that the Registered Representative recommended high risk, high commission illiquid investments.” The customer dispute is pending.
In addition, Otto Bohon has been the subject of three other customer complaints, including one that remains pending, including the following:
- February 2021 — “The customer alleges that on March 9, 2020, the Registered Representative sold 4 stocks from her discretionary managed account without her permission.” The customer dispute is pending.
- September 2020 — “During the period January 2017 through approximately March 2020, the customer alleges that the Registered Representative breached his fiduciary duty.” The customer dispute was settled for $465,000.
- August 2020 — “During the period 2013 through October 2018, the customer alleges that the Registered Representative misrepresented investments.” The customer dispute was closed with no action.
For a copy of Otto Bohon’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.
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