When Unsuitable Structured Product Recommendations Lead To Investor Losses
Centaurus Financial & Brokers Fined Over $1M For Marketing Variable Interest Rate Investments To Retail Customers
Once again, Centaurus Financial is making headlines for allegedly unsuitably recommending financial products that were too risky for retail customers. This time the investments were variable interest rate structured products, which are complex, illiquid, and have maturity rates of 15 years or greater.
Centaurus brokers Atul Makharia, Ricky Alan Mantei, and other registered representatives at a Lexington, South Carolina branch are accused of recommending variable interest rate structured products to 94 retail investors for whom these investments were not a proper fit given each of their respective financial objectives and needs. To settle related US Securities and Exchange Commission (SEC) charges, Centaurus consented to pay a $750K penalty. Both brokers, who agreed to pay six-figure penalties and were suspended, have been involved in multiple customer disputes during their careers—42 investor loss claims for Mantei (also of the Mantei Group) and 10 for Makharia (also of Cole Wealth Advisors).
How Can Our Centaurus Broker Negligence Lawyers Help?
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent investors who have suffered losses because brokers and investment advisers unsuitably recommended financial products that were too risky for customers. Over the past year, we have filed FINRA lawsuits against this brokerage firm and others because they unsuitably recommended another investment, GWG L Bonds, to many investors, including retail customers, older investors, and retirees. Issuer GWG Holdings, Inc. filed for bankruptcy in April 2022.
Typically issued by big financial institutions, variable interest rate structured products can be high risk. They carry the potential for investors to lose some or all of their principal if the securities indexes that these investments references go down by more than a certain percentage upon maturity. Brokerage firms generally have no business marketing and selling these types of investments to retail investors and most older retirees.
If you’ve suffered serious investment losses involving structured products, we can help you explore your legal options. Should we agree to work together, Shepherd Smith Edwards and Kantas will represent your structured product loss claim and fight for you to recover damages.
Not only are we experienced when it comes to these types of risky investments, but also, we have spent more than 30 years helping investors pursue and obtain damages from the largest brokerage firms in the United States. We offer investors unparalleled securities law representation and quality personal attention.
Call (800) 259-9010 today to request your free, no-obligation case consultation with our Broker Negligence Lawyers.