Bryon Martinson, a former registered representative with Centaurus Financial, Inc., is facing serious allegations from customers who claim that he failed to properly invest their money in accordance with their financial goals. Instead, the customers allege that Martinson chose to invest the majority of their funds in high-risk, illiquid, non-traded REITs (Real Estate Investment Trusts). The allegations, which were filed on January 3, 2024, are currently pending resolution.
The customers did not specify the exact dates of the alleged misconduct in their Statement of Claim. However, the disclosure type is listed as a “Customer Dispute,” and the product types involved are described as “Debt,” “Corporate Real Estate Security,” and “Real Estate Security.” The damages requested by the customers have not been disclosed at this time.
Bryon Martinson was registered with Centaurus Financial, Inc. (CRD 30833) in the state of New York from October 7, 1999, to September 16, 2022. He is no longer registered as a broker or investment advisor, according to his BrokerCheck record.
Understanding the Allegations and FINRA Rules
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The allegations against Bryon Martinson suggest that he may have violated FINRA Rules related to suitability and the proper handling of customer investments. FINRA Rule 2111 requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile.
This investment profile includes factors such as the customer’s age, financial situation, investment objectives, risk tolerance, and investment experience. If Martinson invested his customers’ money in high-risk, illiquid, non-traded REITs without properly considering their investment goals and risk tolerance, he may have violated this rule.
Additionally, FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade. If Martinson acted in his own interests rather than those of his customers, he may have breached this rule as well.
According to a study by Forbes, investment fraud and bad advice from financial advisors are unfortunately common, with an estimated $50 billion lost annually to financial fraud in the United States alone.
The Impact on Investors
The allegations against Bryon Martinson serve as a reminder of the importance of working with a trustworthy and ethical financial advisor. When an advisor fails to act in their clients’ best interests, it can have severe consequences for investors, including significant financial losses and the inability to achieve their investment goals.
Non-traded REITs, in particular, can be problematic for investors due to their high fees, lack of liquidity, and potential for substantial losses. These investments may be unsuitable for many investors, especially those with a low risk tolerance or a need for easy access to their funds.
Investors who have suffered losses due to the misconduct of their financial advisors may be able to recover some or all of their losses through FINRA arbitration. This process allows investors to seek compensation from their advisors and the firms they work for, without the need for a lengthy and expensive court battle.
Recognizing Red Flags and Seeking Help
Investors should be aware of the red flags that may indicate financial advisor malpractice, such as:
- Recommending investments that are inconsistent with the investor’s goals and risk tolerance
- Failing to properly explain the risks and fees associated with an investment
- Engaging in excessive trading or unauthorized transactions
- Pressuring investors to make quick decisions or invest in specific products
If you suspect that you have been the victim of financial advisor misconduct, it is essential to seek help from a qualified investment fraud attorney. Haselkorn & Thibaut, a national investment fraud law firm with over 50 years of combined legal experience, is currently investigating the allegations against Bryon Martinson and Centaurus Financial, Inc.
With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut has a proven track record of success in helping investors recover their losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning that clients pay no fees unless a recovery is obtained.
Investors who have suffered losses due to the misconduct of Bryon Martinson or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm can be reached toll-free at 1-888-628-5590.
