Articles Tagged with Centaurus Financial

The securities attorneys at Chicago-based Stoltmann Law Offices are representing investors in FINRA arbitration actions against multiple brokerage firms that recommended GWG-L-bonds to their clients. Our investigation into GWG, which includes monitoring and being involved in the Chapter 11 bankruptcy, is focused on two issues: First, GWG L-Bonds were speculative, high risk, unrated debt instruments. One of the biggest issues with this bond program is, the bondholders were subordinate to hundreds of millions of dollars other debt.  The debt owed by GWG in these bonds are not the first priority to be paid back by the company on the “capital stack”.  These were very high risk investments, so unless that was made clear to you by your financial advisor, you may have a claim to pursue for misrepresentations and commissions and for recommending an unsuitable investment.  Either of these are actionable.

The other main issue here from the brokerage firm perspective is the failure to perform reasonable due diligence. Although 160 brokerage firms sold GWG Financial, this is actually a super-minority, roughly 5%, of all brokerage firms nationwide. In reality, very few firms approved GWG for sale to their customers.  GWG was allowed to borrow up to 90% of its listed assets. Its assets are almost all illiquid and subject to “fair valuation” which is an extremely dangerous financial situation for investors.  Big firms like Merrill Lynch and Morgan Stanley don’t go anywhere near unrated speculative bonds like this. But a lot of firms do because GWG paid brokers massive 8% commissions to sell these bonds which were the financial life-blood of GWG.  Even through the US government began investigating GWG in October 2020, and brokerage firms still continued to sell them.  As early as march 2020, GWG was reporting publicly about “several material weaknesses” with respect to the company’s accounting processes.  By 2020, there were more Red Flags about GWG than a Soviet May-Day parade and yet brokerage firms continues to sell it, and one reportedly BOOSTED sales.

It was reported this week that Centaurus Financial, with 640 brokers nationwide, actually increased the amount individual investors could invest in GWG from $100,000, to $150,000. Brokers went on the sales push to recommend their clients increase their investment in the GWG L-Bonds in April 2020, after GWG reported material issues with accounting and after it entered into a highly questionable transaction with the Beneficient Company, alleged now to have been securities fraud.

AdobeStock_50775754-2-300x200Did you lose money with Donnie Ingram, a financial advisor with Centaurus Financial? If so, the attorneys at Stoltmann Law Offices are interested in speaking with you regarding those losses. We are based in Chicago, Illinois and Barrington, Illinois and we sue firms such as Centaurus Financial on a contingency fee basis on behalf of clients who lost money with brokers such as Donnie Ingram. The call is free with no obligation, so please call today to find out how you may be able to recover your money losses. 312-332-4200.

Ingram allegedly sold direct participation products (DPPs) to his clients, including non-traded real estate investment trusts (REITs) and other alternative investments. Unfortunately, many of these products are high-risk and illiquid investments that are not suitable for all clients. A broker must do his due diligence on securities and only recommend and sell those that are suitable for customers. If he does not, his firm may be liable for losses because it did not reasonably supervise its broker.

According to his online, FINRA BrokerCheck report, Donnie Ingram was registered with Protective Equity Services, Berachah Securities Corp, Mariner Financial Services, NAP Financial Corp, Walnut Street Securities, Buckhead Financial Corp, IFG Network Securities and Investors Capital Corp. He is currently registered with Centaurus Financial in Winter Haven, Florida and has been since July 2016. He has five customer disputes against him, five of which are currently pending.

According to a Financial Industry Regulatory Authority (FINRA) Dispute Resolution Award, Centaurus Financial was forced to pay over $150,000 to some of its clients. The claimants in the case asserted the following causes of action for suing Centaurus: suitability, fraudulent or negligent material misrepresentations and omission of material information, violation of FINRA Rules, violation of the New Mexico Unfair Practices Act; violation of Section 11 of the Securities Act of 1933 and failure to supervise.

Allegedly, the Centaurus client was a widow in her mid-sixties. After the death of her husband, the client was introduced to a Centaurus broker, Seyed Ahmad Hashemian. The client invested approximately $2.2 million with Hashemian. The client’s overall investment strategy was to avoid risk and have her funds managed for her income, retirement needs and her grandchildren. The investments that Hashemian made for the client were unsuitable and did not meet her investment objectives. Centaurus was found to be liable for Hashemian’s actions because the firm failed to supervise him in a proper and reasonable manner both during and subsequent to the period he was under heightened supervision with Centaurus.

If you invested money with Centaurus Financial, you may be able to recover your losses by calling our securities law firm in Chicago at 312-332-4200 to speak to an attorney. The call is free and there is no obligation. We take cases on a contingency fee basis so we only get paid if you recover money. We sue firms such as Centaurus in the FINRA arbitration forum.

Stoltmann Law Offices is investigating Kenneth Finnell, a broker registered with Centaurus Financial in Temecula, California. According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report, he is the subject of two tax liens. Kenneth Finnell was registered with Penn Mutual Equity Services in Horsham, Pennsylvania from April 1986 until September 1991, John Hancock Distributors in Boston, Massachusetts from September 1991 until December 1995, The Advisors Group in Bethesda, Maryland July 1995 to September 2006, Raymond James Financial in Houston, Texas from May 2006, LPL Financial Corporation in El Segundo, California from August 2007 until November 2009 and Newport Coast Securities in Temecula, California from November 2009 until 2012. He is currently registered with Centaurus Financial in Temecula, California and has been since April 2012. Please call our securities law firm in Chicago for a free consultation.

Stoltmann Law Offices is investigating Robert Alan Horning for Tenant-in-Common complaints. Horning was a former advisor with Cantaurus Financial. He is accused of recommending unsuitable investments, breaching contract, breaching fiduciary duty, acting negligently, violating state and federal securities law and committing common law fraud. Horning was registered with Wealth Resource Capital Corporation in Newport Beach, California from January 1993 until December 1994, United Pacific Securities Inc. in Carlsbad, California from December 1994 until June 1995, Aragon Financial Services in Irvine from March 1999 until August 2000, NNN Capital Corp in Santa Ana, California from June 1995 until July 2003, MCL Financial Group in Santa Ana from July 2003 until December 2004 and Direct Capital Securities in Austin, Texas from November 2004 until July 2009. He is currently registered with Direct Capital Securities in Los Angeles, California and has been since July 2009. He has eight customer disputes against him, one of which is currently pending. If you invested money with Robert Alan Horning, please call our securities law office at 312-332-4200 to speak with an attorney. The call is free with no obligation. We take cases on a contingency fee basis. We sue firms such as Centaurus Financial for failing to supervise representatives such as Horning in the FINRA arbitration forum.

Stoltmann Law Offices is investigating Leslie Anne Cannon, a former broker with Centaurus Financial in Issaquah, Washington. She is accused of breaching fiduciary duty, violating state rules, violating Financial Industry Regulatory Authority (FINRA) rules, and acting negligently. Cannon was registered with Pacific West Securities from January 2007 until January 2012 and Centaurus Financial since January 2012. She is currently registered with Centaurus. She has two customer disputes against her, one of which is currently pending. If you invested money with Leslie Anne Cannon, you may be able to recover your investment losses by calling us at 312-332-4200. Centaurus and Pacific West may be liable for failure to supervise her while she was employed with them. The call is free with no obligation. We take cases on a contingency fee basis.

The Financial Industry Regulatory Authority (FINRA) recently barred former Securities America broker Judith Woodhouse for allegations that she violated firm policies related to the borrowing of funds. She is also accused of selling private placements and for being involved in private securities transactions that totaled over $500,000. For this, she was fined $10,000 and suspended for three months.

Judith Woodhouse was registered with The Equitable Life Assurance Society of the United States from June 1998 until January 2000, AXA Advisors in New York, New York from June 1998, United Planners’ Financial Services of America from January 2003 until May 2004, Centaurus Financial in Anaheim, California from May 2004 until February 2005, EPlanning Securities from February 2005 until December 2008, and Securities America in Irvine, California from July 2013 until September until 2014. She has one customer dispute against her. She is no longer licensed within the industry and FINRA permanently barred her from associating with any firm.

Firms such as Securities America have a duty to reasonably supervise their brokers, and, if they do not, can be held liable for investment losses. If you lost money with Judith Woodhouse, Securities America can be sued in the FINRA arbitration forum on a contingency fee basis. Please call our securities law firm at 312-332-4200 to speak to an attorney about your options. The call is free with no obligation.

Stoltmann Law Offices is investigating Fera Shivaee, a registered representative with Centaurus Financial. Shivaee allegedly made unsuitable investments, misrepresentations and false statements in connection with recommendations to invest in private placements such as tenants-in-common (TICs). In the past nine years, TICs have been a major contributor to bankrupting brokerage firms. Almost half of the companies that sold TICs are no longer in business. TICs are private placements that have no secondary trading market and are therefore illiquid investments. Usually the TICs are sold by an investment advisor who charges an up-front fee. The investor runs the risk of holding the property for a significant amount of time and the subsequent sale of the property may occur at a discount to the value of the real property interest. The costs associated with TICs may also outweigh potential tax benefits to the investor.

Ms. Shivaee was registered with Marnier Financial Services in Largo, Florida from March 1993 until November 1993, Centaurus Financial in Anaheim, California from October 1993 until November 1996, Finance 500 in Irvine, California from November 1995 until December 1996 and SunAmerica Securities in Phoenix, Arizona from October 1996 until November 1997. She is currently registered with Centaurus Financial in Irvine, California and has been since November 1997. Ms. Shivaee has two customer disputes against her, one of which is currently pending.

If you lost money with Ms. Shivaee, please call our securities law firm based in Chicago, Illinois at 312-332-4200 to speak to an attorney. You may be able to sue Centaurus Financial for investment losses. They had a duty to reasonably supervise her while she was employed with them. The call is free with no obligation.

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