Investment fraud is a serious issue that can lead to significant financial losses for investors. Recently, a case has been brought to light involving Gary Sauve, a registered representative with Centaurus Financial, Inc.. The allegation, which is currently pending, was filed on September 19, 2023, by a customer who claims that Sauve recommended unsuitable, high-risk, speculative, and illiquid investments. Furthermore, the customer alleges that Sauve breached his fiduciary duty. The customer is seeking $50,000 in damages.
The Seriousness of the Allegation and Case Information
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The allegation against Gary Sauve and Centaurus Financial, Inc. is a serious one. Breach of fiduciary duty and recommending unsuitable investments are severe violations in the financial industry. The Financial Industry Regulatory Authority (FINRA) regulates these matters to protect investors and ensure the integrity of the market.
The case, filed under the number 23-02466N, is currently pending. Gary Sauve was previously affiliated with another broker and investment advisor before joining Centaurus Financial, Inc. on June 4, 2015, where he remained until March 9, 2021. The nature of the investment in question is corporate debt.
Explanation in Simple Terms and the FINRA Rule
In simple terms, breach of fiduciary duty means that Gary Sauve did not act in the best interest of his client. Instead, he recommended investments that were unsuitable for the client’s risk profile and financial situation. These investments were high-risk, speculative, and illiquid, meaning they could not be easily sold or exchanged for cash without a substantial loss in value.
The FINRA Rule 2111, also known as the Suitability Rule, requires that a broker have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This rule is based on the information obtained through reasonable diligence to ascertain the customer’s investment profile.
Why It Matters for Investors
This case matters for investors because it highlights the potential risks involved with trusting financial advisors. If the allegations against Gary Sauve and Centaurus Financial, Inc. are proven true, it means that investors may not always receive advice that is in their best interest.
Investors rely on financial advisors to guide them in making sound financial decisions. Breach of fiduciary duty and recommending unsuitable investments can lead to significant financial losses. In this case, the customer is seeking $50,000 in damages.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
There are several red flags for financial advisor malpractice. These include recommending unsuitable investments, failing to disclose information, and breaching fiduciary duty. If you notice any of these red flags, it is essential to take action immediately.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the case against Gary Sauve and Centaurus Financial, Inc.. With over 50 years of experience and an impressive 98% success rate, Haselkorn & Thibaut has successfully recovered financial losses for investors through FINRA Arbitration.
Investors can recover their losses by filing a claim through FINRA Arbitration, a dispute resolution process that is faster and less formal than court proceedings. Haselkorn & Thibaut offers free consultations to clients and operates on a “No Recovery, No Fee” policy. You can reach them at their toll-free consultation number, 1-800-856-3352.
