Centaurus Financial: Reviews, Complaints, Loss Recovery & Regulatory Actions

/ By
Centaurus Financial: Reviews, Complaints, Loss Recovery & Regulatory Actions

Navigating the world of financial services can be overwhelming, especially when it comes to choosing the right firm to handle your investments. Centaurus Financial is one such firm, with a diverse client base and a wide range of investment strategies. But what lies beneath the surface?

Haselkorn & Thibaut, is currently investigating several financial advisors that are registered representatives with Centaurus Financial Inc. It is alleged that products were sold to clients that were not suitable or misrepresented. If you are an investor, please call our toll-free number at 1-800-856-3352 for a free consultation.

In this blog post, we’ll dive deep into the facts about Centaurus Financial and explore its company profile, regulatory history, and more.

Short Summary

Understanding Centaurus Financial

Centaurus Financial is a broker-dealer and registered investment advisor with a hefty $2.66 billion in assets under management (AUM). As a member of the Financial Industry Regulatory Authority (FINRA), they must adhere to the strict guidelines set forth by this regulatory body.

With over 300 branch offices, Centaurus Financial serves a wide range of clients, offering investment strategies such as diversification, dollar-cost averaging, and asset allocation.

Company Profile

Headquartered in Anaheim, California, Centaurus Financial is a nationally-recognized independent broker/dealer licensed to offer securities, investment advisory services, and insurance products. The Federation of Financial Services is the primary shareholder and holds a large percentage of ownership. It owns more than 75% of the interests.

As a testament to its nationwide reach, Centaurus Financial is licensed to operate in all 50 states, the District of Columbia, and the Virgin Islands.

Clientele and Account Minimums

Centaurus Financial specializes in serving high net worth individuals as well as corporations and other businesses. While the minimum account size requirement stands at $25,000, clients should thoroughly review all materials pertaining to services provided by third-party portfolio managers not associated with the firm.

Investment Programs and Strategies

Centaurus Financial offers a diverse range of investment products and services to cater to the unique needs of its clientele. With options such as college savings plans, individual equities, fixed income, and retirement plans, investors can build a well-rounded portfolio. Their investment strategies focus on diversification, spreading clients’ funds across multiple asset classes in the investment industry to lower risk and maximize potential returns.

One of their flagship programs is the CLASSIC Plus program, a portfolio management service that grants clients access to a variety of investment products and services. With a minimum investment requirement of $25,000, this program offers flexibility and customization to meet each investor’s financial objectives.

Regulatory Issues and Customer Complaints

Despite its success, Centaurus Financial has faced its fair share of regulatory issues and customer complaints. Many of these stem from misconduct and lack of supervision of their financial advisors. The business model of independent broker-dealers, like Centaurus Financial, sometimes leads to inadequate oversight practices and procedures, resulting in regulatory actions and customer grievances.

The most prominent instance of unjust practices against Centaurus Financial occurred in 2021 when they consented to settle a situation involving mutual fund breakpoints. This case highlights the need for investors to remain vigilant and aware of potential regulatory issues with any financial services firm they choose to work with.

History of Regulatory Actions

Regulatory actions against Centaurus Financial include fines imposed by FINRA and charges filed by the Securities Investor Protection Corporation (SEC). In one notable case, the Financial Industry Regulatory Authority (FINRA) censured and fined Centaurus Financial $100,000 and ordered them to pay restitution to affected customers who did not receive sales discounts in excess of $85,000 due to the firm’s failure to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010.

The FINRA industry review in 2016 found that Centaurus Financial had failed to identify and apply certain sales charge discounts to eligible purchases of UITs made by certain customers. This case originated from this review. Consequently, they paid a $100,000 fine and reimbursed $85,281.62 to all affected customers.

List of disclosures From FINRA Brokercheck

Based on the information provided, here is a summary of the disclosures:

Disclosure 1 of 17

– Reporting Source: Firm

– Allegations: Violations of investment-related rules and regulations by Centaurus Financial Inc. and certain affiliates.

– Status: Final

– Sanctions: $650,000 total payment to the Division (with $425,000 as civil penalty and $225,000 as reimbursement for the Division’s investigation costs)

Disclosure 2 of 17

– Reporting Source: Regulator

– Allegations: Violations committed by Centaurus Financial Inc., Ricky A. Mantei, and Atul Makharia.

– Sanctions: Censure, Monetary fine of $750,000, Disgorgement of $4,876, Prejudgment interest of $623, Cease and Desist/Injunction Order.

Disclosure 3 of 17

– Reporting Source: Regulator

– Allegations: The firm failed to supervise a registered representative’s recommendations of Unit Investment Trusts (UITs) and alternative investments.

– Status: Pending

Disclosure 4 of 17

– Reporting Source: Regulator

– Allegations: Violations related to mutual fund share class selection, cash sweep programs, and no transaction fee mutual funds.

– Sanctions: Censure, Monetary fine of $250,000, Cease and Desist/Injunction Order.

Disclosure 5 of 17

– Reporting Source: Firm

– Allegations: Non-disclosure of an administrative action on three licensing renewal applications and untimely reporting of two administrative actions.

– Sanctions: Monetary fine of $500

Disclosure 6 of 17

– Reporting Source: Regulator

– Allegations: Failure to supervise registered representatives and non-compliance with the fair practice or ethical standards.

– Sanctions: Monetary fine of $500

Arbitration disclosures were also noted. The summaries of the key disclosures are:

Arbitration Disclosure 1 of 8

– Sum of Relief Awarded: $719,279.32

– Allegations: Breach of fiduciary duty, unsuitable account activity, breach of contract, failure to supervise.

– Disputed Product: Annuities

Arbitration Disclosure 2 of 8

– Sum of Relief Awarded: $213,485.86

– Disputed Product: Other types of securities

Arbitration Disclosure 3 of 8

– Sum of Relief Awarded: $40,000.01

– Allegations: Breach of fiduciary duty, other account activities, failure to supervise, negligence.

– Disputed Product: Common stock

Arbitration Disclosure 4 of 8

– Sum of Relief Awarded: $42,477.01

– Allegations: Misrepresentation, omission of facts, suitability.

– Disputed Product: Annuities

Arbitration Disclosure 5 of 8

– Sum of Relief Awarded: $186,544.05

– Allegations: Breach of fiduciary duty, unsuitability, negligence.

– Disputed Product: Common stock

Arbitration Disclosure 6 of 8

– Sum of Relief Awarded: $817,116.01

– Allegations: Breach of fiduciary duty, misrepresentation, omission of facts, breach of contract.

Arbitration Disclosure 7 of 8

– Allegations: Breach of fiduciary duty, misrepresentation, omission of facts, suitability, breach of contract, failure to supervise, negligence.

– Disputed Product: Real estate

Arbitration Disclosure 8 of 8

– Sum of Relief Requested: $1,500 for brevity’s sake. You can ask me for the full text if you want it.

Common Customer Complaints

Customer complaints against Centaurus Financial typically revolve around unsuitable investment recommendations and unfair practices. Some clients have even raised concerns about potential violations of the Investment Advisers Act of 1940.

While not all complaints may result in regulatory action, they serve as a reminder for investors to be cautious and well-informed when working with financial services firms.

Supervision and Responsibility

Centaurus Financial is responsible for supervising its clients and ensuring that they are adhering to the regulations stipulated by FINRA. They must guarantee that their clients are acting in their best interests and not participating in any activities that are considered unethical or unlawful.

By upholding the utmost standards of integrity and professionalism in their relationship with clients, Centaurus Financial aims to maintain its commitment to those they serve.

When faced with potential investment loss or fraud related to Centaurus Financial, investors have legal recourse. They may consider filing complaints with the Securities and Exchange Commission (SEC) or hiring an investment loss attorney to explore potential legal action against the firm. Although investors might have agreed to settle disputes through FINRA arbitration, they can still pursue legal action if necessary.

FINRA arbitration is a dispute resolution process conducted through an arbitration panel for the securities industry. It provides an efficient and cost-effective means of resolving disputes, and investors may appeal the decision of the arbitration panel to state or federal court if necessary. In many cases involving Centaurus Financial, disputes have been settled through arbitration, which can offer a more streamlined and less costly alternative to traditional litigation.

FINRA Arbitration

As a more cost-effective and efficient means of resolving disputes within the securities industry, FINRA arbitration is a valuable option for investors. Through an arbitration panel, the process is designed to resolve disputes fairly and in a timely manner.

Should investors be dissatisfied with the outcome, they retain the option to appeal the decision to a state or federal court.

In cases involving potential investment loss or fraud, contacting a securities lawyer who specializes in securities law can be an invaluable resource. These attorneys can offer considerable assistance in recovering any losses incurred due to potential wrongdoing.

To evaluate the viability of a case against Centaurus Financial, investors can contact our experience investment attorneys at

Success Rates and Settlements

While determining the overall success rate of legal cases involving Centaurus Financial can be challenging due to the fluctuating nature of individual cases, their fraud attorney team boasts a 99% efficacy rate.

The company and its representatives have faced several settlements and charges for unsuitable recommendations and other violations, demonstrating the importance of remaining vigilant in the pursuit of justice.

Fees and Expenses

To understand the fees and expenses associated with working with Centaurus Financial, it is essential to consult their Wrap Fee Program Brochure. This document outlines their qualifications, business practices, and fee structure, providing a clear view of the costs involved in working with the firm.

The Wrap Fee Program Brochure is available on the Centaurus Financial website and can be accessed by any potential client. It is important to read through the document carefully to ensure that all fees and expenses are understood before entering the document.

Advisory Fees

As part of their fee structure, Centaurus Financial charges a 0.6% fee on assets under management, along with an annual consulting fee of $2,400. This annual fee can be paid in monthly installments, offering flexibility to their clients.

The fees are calculated based on the assets under management and applied accordingly.

Additional Costs

In addition to the advisory fees, investors with Centaurus Financial may encounter other costs, such as trading, research, and account maintenance fees. These fees can vary depending on the investment program, ranging from 1.10% to 2.25%.

It’s important to be aware of these potential additional expenses when considering any financial services firm.

Fee Transparency

Centaurus Financial provides clear information about their fees and other costs associated with their services, such as the flat fee of 1.5% of assets under management and the $100 annual fee. Transparency is key when it comes to understanding the potential costs of working with a financial services firm.

Centaurus Financial makes this information readily available to its clients.

Frequently Asked Questions

Who owns Centaurus Financial?

Ron King is the owner of Centaurus Financial, Inc. He founded the company in 1992 and has been Chairman and CEO since then, overseeing all aspects of its development and implementation.

Under his leadership, the company has grown to become one of the most successful financial services firms in the country. He has been recognized for his commitment.

How much is Centaurus Financial worth?

Centaurus Financial Inc., a financial advisory firm headquartered in Anaheim, California, is currently worth over $4.6 billion in assets under management. The firm caters to individuals and other clients across 52 states, providing invaluable financial services and advice.

Who owns Centaurus financial?

Ron King is the owner of Centaurus Financial, Inc. He founded the company in 1992 and has been the Chairman and CEO ever since.

Who is the largest independent broker-dealer?

BlackRock is the world’s largest independent broker-dealer, with around 10.01 trillion U.S. dollars of assets under management (AUM) as of March 2022. With its extensive portfolio and robust presence in the U.S. brokerage market, BlackRock stands out as the premier broker-dealer among other top firms in the sector.

Scroll to Top