- October 13, 2022
- Centaurus Financial
Patrick Hobert (CRD#: 805680) is a registered Broker and Investment Advisor at Centaurus Financial, Inc. in Newport Beach, CA.
He entered the securities industry in 1975 and previously worked for Wedbush Morgan Securities, Inc.; Brookstreet Capital Management; Brookstreet Securities Corp.; FSC Securities Corp.; Corporate Benefit Securities, Inc.; Prudential-Bache Securities, Inc.; E.F. Hutton & Co., Inc.; Southmark Financial Services, Inc.; CG Equity Sales Co.; American General Capital Planning, Inc.; Glicoa Associates, Inc.; PLA Securities Corp.; and Chubb Securities Corp.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2022, a customer dispute was filed against Patrick Hobert. The FINRA sanction states, “In March 2020, the customer alleges that the Registered Representative improperly recommended a high-risk, high commission and illiquid investment.” The customer dispute is pending, and damages of $100,001 are requested.
In addition, Patrick Hobert has been the subject of 11 customer complaints, including the following:
- May 2019 — “Customer primarily alleges that the financial advisor recommended unsuitable investments in August 2014.” The customer dispute was settled for $6,500.
- February 2014 — “ALLEGATIONS INCLUDE MISREPRESENTATION AND UNSUITABLE RECOMMENDATION WHEN THE CLIENT PURCHASED THE REAL ESTATE SECURITY IN 2012.” The customer dispute was closed with no action.
- May 2006 — “ALLEGED UNSUITABILITY. DAMAGES NOT SPECIFIED.” The customer dispute was closed with no action.
- August 2004 — “ALLEGED UNSUITABILITY.” The customer dispute was closed with no action.
- January 1995 — “UNSUITABLE INVESTMENTS WHILE MR. HOBERT AT PRUDENTIAL SECURITIES AND CORPORATE BENEFIT SECURITIES.” The customer dispute was settled through arbitration.
- October 1993 — “THE ABOVE CLIENTS SUBMITTED CLAIM FORMS TO THE PSI CLAIM RESOLUTION PROCESS RELATED TO THE PURCHASE OF LIMITED PARTNERSHIP DURING THE PERIOD OF 10-88 TO 10-89. THE ABOVE REFERENCED REGISTERED REPRESENTATIVE WAS THE BROKER OF RECORD AT THE TIME OF PURCHASE. NO DAMAGES WERE ALLEGED AGAINST BROKER. INVESTORS WERE SEEKING $19,843 AND $46,301 RESPECTIVELY FROM PSI CLAIMS RESOLUTION PROCESS.” The customer dispute was settled for $33,931.
- October 1993 — “THE ABOVE CLIENTS SUBMITTED CLAIM FORMS TO THE PSI CLAIM RESOLUTION PROCESS RELATED TO THE PURCHASE OF LIMITED PARTNERSHIP DURING THE PERIOD OF 10-88 TO 10-89. THE ABOVE REFERENCED REGISTERED REPRESENTATIVE WAS THE BROKER OF RECORD AT THE TIME OF PURCHASE. NO DAMAGES WERE ALLEGED AGAINST BROKER. INVESTORS WERE SEEKING $19,843 AND $46,301 RESPECTIVELY FROM PSI CLAIMS RESOLUTION PROCESS.” The customer dispute was settled for $27,932.
- May 1989 — “UNSUITABLE INVESTMENTS ALLEDGED PRUDENTIAL SECURITIES PROPRIETARY LIMITED PARTNERSHIPS WERE UNSUITABLE INVESTMENTS.” The customer dispute was settled for $39,000.
- February 1989 — “CUSTOMER ALLEGED SHE WAS NOT SUITABLE WITH RESPECT TO HER INVESTMENT IN RAC MORTGAGE INVESTMENT CORP. PRUDENTIAL-BACHE DENIED THESE ALLEGATIONS, ESPECIALLY IN VIEW OF THE FACT THAT DUE TO MARKET CONDITIONS ONLY THE VALUE OF CUSTOMER’S INVESTMENT HAD DECLINED.” The customer dispute was settled for $10,000.
- March 1988 — “CLIENT ALLEGED THAT MUNICIPAL BONDS SOLD AT WRONG PRICE.” The customer dispute was settled.
- October 1979 — “DATE LINED LIFE INSURANCE APPLICATION. APPLICANT WAS LICENSED TO DO BUSINESS IN STATE OF CONNECTICUT BUT PRODUCT APPLICANT SOLD WAS NOT APPROVED POLICY IN CONNECTICUT.” Patrick Hobert was subject to sanctions including a fine of $1,000 and a one-year suspension of his license imposed by the Department of Insurance in the State of Connecticut.
For a copy of Patrick Hobert’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 firstname.lastname@example.org.