Investment fraud is a serious allegation that can have far-reaching implications for both financial advisors and investors. Recently, a pending customer dispute has been lodged against Craig Sturges of CENTAURUS FINANCIAL, INC. The customers allege that in October 2022, the Registered Representative misrepresented, recommended an unsuitable investment, and breached his fiduciary duty. The alleged misconduct amounts to $27,438.79.
Understanding the Allegation and the FINRA Rule
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The allegation against Mr. Sturges is serious and involves three key claims: misrepresentation, recommending an unsuitable investment, and breaching his fiduciary duty. Misrepresentation refers to providing false or misleading information, while recommending an unsuitable investment involves suggesting an investment that does not align with the client’s financial objectives, risk tolerance, or investment knowledge. Breaching fiduciary duty, on the other hand, refers to failing to act in the best interests of the client.
These allegations, if proven, would constitute a violation of the Financial Industry Regulatory Authority’s (FINRA) Rule 2111. This rule requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This is based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.
Why it Matters for Investors
Such allegations are of significant concern for investors. Misrepresentation and unsuitable investment recommendations can lead to substantial financial losses. Moreover, a breach of fiduciary duty can undermine the trust between an investor and their financial advisor, which is crucial for a successful investment relationship.
Investors need to be vigilant and aware of the red flags for financial advisor malpractice. These include frequent buying and selling of securities (churning), unsolicited investment recommendations, inconsistency between investments and financial goals, and a lack of transparency in fees and commissions.
Haselkorn & Thibaut Investigation
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Mr. Sturges and CENTAURUS FINANCIAL, INC. With over 50 years of experience and a 98% success rate, the firm has successfully recovered financial losses for investors.
Haselkorn & Thibaut operates under a “No Recovery, No Fee” policy and offers free consultations to clients. If you have been affected by this case, or if you suspect financial advisor malpractice, you can reach out to them at their toll-free consultation number, 1-800-856-3352.
FINRA Arbitration and Investor Loss Recovery
FINRA Arbitration is a dispute resolution process that allows investors to recover losses due to financial advisor malpractice. The process is faster and less formal than litigation, and it can be a viable option for investors who have suffered financial losses due to misrepresentation, unsuitable investment recommendations, or breach of fiduciary duty.
With the help of a reputable law firm like Haselkorn & Thibaut, investors can navigate the FINRA Arbitration process and potentially recover their losses. They have a proven track record of successful financial recoveries for investors and are dedicated to holding financial advisors accountable for their actions.
