One of the most important things in any fiduciary relationship is trust. You are putting your faith in a professional that works in the industry and has the knowledge and experience to guide you. You should be able to rely on your broker/financial advisor to give you prudent and objective advice.
Centaurus Financial is facing lots of regulatory issues from failing to follow the most basic standards for the securities industry. The allegations against the firm and its brokers/financial advisors for wrongdoing include:
- Making unsuitable recommendations in private placements and variable annuities
- Securities fraud with some brokers/advisors actively promoting Ponzi schemes
- The churning of customers’ accounts to make a commission
- The breach of fiduciary trust
Your broker/financial advisor and Centaurus Financial have a legal obligation to look out for your best interests. They must make recommendations that will help you to meet your investment objectives and have the lowest commissions and fees.
Centaurus Financial has settled arbitrations related to these issues and has more cases coming up. The Financial Industry Regulatory Authority (FINRA) regulates the securities industry. Its records show that Centaurus Financial has 16 regulatory events..
Things are becoming worse as more of its brokers/advisors are accused of violating FINRA’s rules. FINRA is focusing on why Centaurus Financial failed to supervise and enforce its policies and procedures. This lack of controls led to customers’ purchasing investments and actions that harmed their portfolios.
The Wolper Law Firm, P.A. is actively investigating and taking legal action against Centaurus Financial. We will help you to understand what happened and those options for holding the broker/advisor and the firm accountable.
You will work with a qualified Centaurus Financial investment loss attorney that has experience with these cases. We will not stop until we hold the broker/advisor and the firm accountable for their actions.
Contact us now at 954.406.1231 / 800.931.8452 to schedule your free consultation with a skilled attorney.
Centaurus Financial Complaints
Centaurus Financial is facing growing complaints from regulators about unfair practices. The most significant case occurred in 2021 when Centaurus agreed to settle a case involving mutual fund breakpoints. Breakpoints are when mutual funds will decrease the sales charge to encourage you to invest more money with them. In the past, brokers and advisors would go just below the breakpoints to make higher commissions.
FINRA banned this practice and cracks down on firms and brokers/advisors that engage in it. In June 2021, Centaurus Financial made disclosures to its customers that it received fees from select mutual fund companies for investing their clients’ funds with them.
Things get worse when the firm fails to find mutual funds for customers with lower fees. The funds that these clients purchased had high sales charges that adversely impacted performance. An investigation found that Centaurus was encouraging its financial professionals to put their clients in certain mutual funds with these high fees. FINRA penalized Centaurus Financial as follows:
- $907,377 in damages
- $124, 019 in interest
- $250,00 in fines
Centaurus Financial agreed to these penalties without admitting to any wrongdoing in this case or denying FINRA’s findings. These situations don’t prevent other investors from being harmed by unscrupulous brokers and financial advisers.
The Wolper Law Firm, P.A. can help if you are facing similar challenges with Centaurus Financial. We will discuss the possibility of a Centaurus Financial lawsuit and whether this is the best option for you. Our team will aggressively investigate and go after those that are responsible for your losses.
Centaurus Financial has a legal obligation to look out for your best interests. You may be entitled to compensation if you were put into more aggressive investments than you wanted. Our team will look at all of the rules and identify where violations occurred. We will not stop until we create successful outcomes for you.
Contact us now at 954.406.1231 / 800.931.8452 and schedule your free consultation with a Centaurus financial fraud attorney. You have nothing to lose and will get objective legal advice you can use.
Why Choose Us?
You need a Centaurus Financial fraud attorney on your side that understands the law and has experience with these cases. Our team of dedicated professionals gives your case the attention it deserves. We leave nothing to chance and look at every possible situation to understand what happened. Our track record speaks for itself with us recovering money for wronged investors in 99% of the cases we handle.
Contact us today at 954.406.1231 / 800.931.8452 to schedule your free consultation with a Centaurus Financial fraud attorney. We will go over your case and lay out the different options we can pursue.
FAQS
FINRA will investigate your case and ask the firm and financial professional for a response. FINRA will decide if there is enough evidence for arbitration and if its rules were broken. An arbitration date is scheduled and a panel will make a decision. We have the option of appealing the decision to the state or federal courts.
FINRA has the power to fine, suspend, or bar an individual/firm from working in the securities industry. The punishment depends on the track record and the panel hearing the case.
In most cases, we will have to settle your dispute through arbitration. You signed an agreement to settle your disputes through FINRA’s arbitration procedures when you opened your account.
Arbitration is the way to settle disputes in the securities industry since the mid-1980s. It resolves disputes for less time and money than going to court. An arbitration panel hears your case, looks at the evidence, and makes a decision with a judgment. You have the option of appealing the decision to state or federal court. You must go through arbitration before getting the courts involved.
Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks.
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