Haselkorn & Thibaut has opened an investigation into financial advisor William C. Burks II and his activities at Centaurus Financial. Our experienced securities fraud attorneys are examining multiple investor complaints and regulatory violations that have emerged over the past several years.
Background on William C. Burks II
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William Charles Burks II, also known as Bill Burks II, operates as Burks Financial through Centaurus Financial in Flower Mound, Texas. According to the Financial Industry Regulatory Authority, Bill Burks II holds 27 years of securities industry experience. Based in Flower Mound, Texas, he has been registered as a broker and an investment advisor with Centaurus Financial since 2000 and 2011, respectively, doing business as Burks Financial.
Before joining Centaurus Financial, Burks worked at PFS Investments from 1997 to 2000. His current licenses span multiple states including Arizona, California, Idaho, Louisiana, New Hampshire, North Carolina, Tennessee, and Texas.
FINRA Disciplinary Action and Suspension
In a significant regulatory development, FINRA suspended him from associating with any member firm for a period of two months. It also ordered him to pay a fine of $10,000. The disciplinary action stemmed from violations of FINRA Rules 2111 and 2010.
According to the Letter of Acceptance, Waiver, and Consent, Burks recommended the customers invest between 51% and 91% of their net worths in the products, in excess of firm concentration guidelines. “Such investments were not consistent with the customers’ investment profiles,” the Letter states, “because the alternative investment were illiquid or had limited liquidity and subjected the customers to a substantial risk of loss.”
Pattern of Customer Complaints
Recent Complaints (2024)
The most concerning pattern involves recent high-dollar complaints. The most recent, filed in August 2024, alleges that as a representative of Centaurus Financial, he breached his fiduciary duty and made unsuitable recommendations of illiquid and speculative investments. The pending complaint alleges damages of $200,000.
An earlier investor complaint, filed in February 2024, similarly alleges that Mr. Burks recommended unsuitable investments and breached his fiduciary duty. The pending complaint alleges $1 million in damages.
Historical Complaint Pattern
Burks has faced multiple customer complaints throughout his career. There are twelve customer disputes recorded on his BrokerCheck profile. The allegations consistently involve similar themes:
- Misrepresentation of investments
- Unsuitable investment recommendations
- Breach of fiduciary duty
- Concentration in inappropriate investments
- Failure to explain liquidity risks
Settlement History
Several complaints have resulted in settlements, indicating the merit of investor concerns. According to FINRA’s BrokerCheck, there have been settlement amounts of $20,000.00, $249,000.00, $49,999.00, $52,750.00, and $40,000.00.
The GWG Holdings L Bonds Connection
A significant portion of the complaints against Burks relates to GWG Holdings L Bonds, which have become a major source of investor losses. Many are associated with risky investments such as GWG L Bonds. Financial advisors are required to disclose all risks to investors and may be held responsible if they fail to do so.
What Were GWG L Bonds?
GWG Holdings offered high-yield bonds backed by life insurance policies. However, these investments carried substantial risks:
- Illiquid investments with no secondary market
- Unrated and speculative securities
- High commission products (up to 8% for brokers)
- Complex structure that many investors didn’t understand
The Collapse
Their financial stability began to waver, culminating in a Chapter 11 bankruptcy declaration by April 20, 2022. A closer look at their books from September 30, 2021, reveals a concerning picture: GWG was submerged in about $2 billion in net liabilities, of which a whopping $1.3 billion were L Bonds.
The bankruptcy has been devastating for investors. In a telling assessment, U.S. Bankruptcy Judge Marin Isgur remarked on October 3, 2023, “There is no material recovery that will go out on a percentage basis out of the liquidation of this portfolio [of life insurance policies].” He further noted his belief that the “[GWG] L Bondholders will lose a very large percentage of their investments.”
Red Flags for Investors
High-Commission Products
Brokers often prioritize products that generate higher commissions rather than what’s best for clients. The GWG L Bonds paid brokers exceptionally high commissions, creating conflicts of interest.
Concentration Risk
Multiple complaints allege that Burks recommended clients invest disproportionate amounts of their net worth in single products or product types, violating basic diversification principles.
Suitability Concerns
The pattern of complaints suggests investments may not have matched client risk profiles. Conservative investors, particularly retirees, were allegedly steered toward speculative investments.
Inadequate Risk Disclosure
Investors consistently report they weren’t fully informed about liquidity risks, credit risks, and the speculative nature of recommended investments.
Centaurus Financial’s Role
Centaurus Financial is run as an office of supervisory jurisdiction, which means its agents usually operate their own offices out of strip malls or office parks with no onsite supervisor. The firm’s financial advisors usually get a 90% payout, which is an incentive to sell high commission products.
This structure may have contributed to inadequate supervision and monitoring of sales practices, potentially enabling the pattern of unsuitable recommendations.
What This Means for Investors
Your Rights as an Investor
If you suffered losses with William C. Burks II or Centaurus Financial, you may have legal remedies available through FINRA arbitration. Securities laws require:
- Suitable investment recommendations based on your financial situation
- Full disclosure of risks associated with investments
- Proper supervision by the brokerage firm
- Acting in your best interest when providing investment advice
Recovery Options
Investors who experienced losses may be able to recover damages through:
- FINRA arbitration claims against the broker and firm
- Claims for breach of fiduciary duty
- Unsuitable investment recommendations
- Failure to supervise claims against the firm
Take Action to Protect Your Investments
Time is critical in securities cases. FINRA arbitration has specific time limits, and waiting too long can eliminate your ability to recover losses.
Free Consultation Available
Haselkorn & Thibaut offers free, confidential consultations to help you understand your rights and options. Our experienced securities fraud attorneys have:
- Over 50 years of experience in investment fraud cases
- 98% success rate in recovering funds for clients
- Millions recovered for investors nationwide
- No recovery, no fee policy
Contact Information
Don’t wait to protect your rights. Contact Haselkorn & Thibaut today at 1-888-994-8066 for a free consultation about your potential claim.
Our legal team will:
- Review your investment history at no cost
- Explain your legal options clearly
- Determine if you have a viable claim
- Handle your case on contingency – you pay nothing unless we recover money for you
Document Preservation
If you’re considering legal action, preserve all documentation related to your investments, including:
- Account statements and trade confirmations
- Marketing materials and prospectuses
- Email and written communications with your broker
- Meeting notes and investment recommendations
Conclusion
The pattern of complaints and regulatory actions against William C. Burks II raises serious concerns about investment practices at Centaurus Financial. Investors who suffered losses deserve experienced legal representation to help them understand their rights and pursue appropriate remedies.
Haselkorn & Thibaut is committed to helping investors recover losses from unsuitable investments and broker misconduct. Our track record speaks for itself, and we’re here to help you navigate this challenging situation.
Call 1-888-994-8066 today for your free consultation. Time limits apply, and the sooner you act, the better we can protect your interests.
