Investment fraud allegations are a serious matter that can significantly impact both investors and financial advisors. One such allegation currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, involves a customer dispute filed on 9/25/2023. The customer alleges that in March and April of 2019, Registered Representative David White of Centaurus Financial, Inc. recommended unsuitable, high-risk, illiquid investments and breached his fiduciary duty. The alleged damages amount to $154,000.
Understanding the Allegation and the FINRA Rule
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The allegation against David White is a serious one, breaching the Financial Industry Regulatory Authority (FINRA) Rule 2111, which requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer. In simple terms, the advisor is accused of recommending investments that were not appropriate for the client’s risk tolerance or investment objectives.
Why It Matters for Investors
Such allegations matter greatly to investors as they place their trust and hard-earned money in the hands of financial advisors, expecting them to act in their best interest. When this trust is violated, investors can suffer significant financial losses. This case serves as a reminder for investors to be vigilant and proactive in understanding the risk associated with their investments.
Red Flags and Recovering Losses
Investors should be aware of red flags such as consistent losses, unauthorized trades, or recommendations of investments that seem out of line with their financial goals or risk tolerance. If you suspect financial advisor malpractice, it’s crucial to take immediate action.
Investors can recover losses through FINRA Arbitration, a dispute resolution process. Haselkorn & Thibaut, with over 50 years of experience and an impressive 98% success rate, specializes in helping investors recover their losses. They offer free consultations and operate on a “No Recovery, No Fee” policy. To discuss your case, you can reach them at their toll-free number, 1-800-856-3352.
Haselkorn & Thibaut’s Investigation
Currently, Haselkorn & Thibaut is investigating the allegations against David White and Centaurus Financial, Inc. Their investigation is focused on determining whether there were any violations of securities laws, and if so, helping investors recover their losses.
With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut is committed to protecting investors nationwide. If you have suffered losses due to the actions of David White or Centaurus Financial, Inc., don’t hesitate to reach out for a free consultation.
