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FINRA Arbitration Panel In Florida Awards Claimant Nearly $100,000 In Damages

On February 22nd, 2023, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Tampa, FL awarded a claim of nearly $100,000 in damages (Case Number: 22-01019). The case was centered on allegations of losses caused by unsuitable investment recommendations and other industry violations. Below, our Miami unsuitable investment attorney provides an overview of ruling from the FINRA arbitration panel and explains what constitutes an unsuitable investment.

Respondents: Centaurus Financial, Inc. and Joseph Michael Todd 

The respondents in the FINRA arbitration case were Centaurus Financial, Inc. and Joseph Michael Todd. Centaurus Financial (CRD#: 30833/SEC#: 801-56882,8-45185) is a brokerage firm with a main headquarters in Anaheim, California. It is licensed to operate in 53 U.S. jurisdictions, including Florida. Joseph Michael Todd (CRD#: 1830390) is a previously registered broker and investment adviser. From August of 2016 through July of 2022, Mr. Todd served as a representative for Centaurus Financial Crystal River, Florida. Joseph Michael Todd was separated from his employment at the brokerage firm in 2022 for alleged improper selling away.

FINRA Arbitration Panel Awards Claimant Compensation 

A claimant raised a number of different allegations against Centaurus Financial, Inc. and its representative Joseph Michael Todd. Among other things, the investor alleges securities losses due to unsuitable investment recommendations, negligent supervision, outside business activities (OBAs), selling away, and violation of Florida state securities laws. Upon review of the allegations and the evidence provided by the parties, the FINRA Arbitration panel awarded the claimant $60,000 in compensatory damages and $37,800 in attorneys’ fees and legal costs. Mr. Todd was the respondent held liable.

 What Investors Should Know About the FINRA Suitability Rule 

FINRA’s suitability rule is a regulation designed to protect investors from unsuitable investment recommendations. This rule requires that brokers and financial advisors make investment recommendations that are suitable for their clients’ financial objectives, risk tolerance, and other personal circumstances.

To comply with the suitability rule, brokers and advisors must gather relevant information about their clients, such as their age, income, investment experience, and financial goals. Based on this information, they must recommend investments that are appropriate for their clients’ specific needs and circumstances.

An investor who sustains financial losses as a consequence of unsuitable investment guidance may have a claim against their broker or brokerage firm. If you believe that you have an unsuitable investment claim, you should consult with an experienced Florida investment losses attorney who can help you navigate the process.

 Consult With a Miami, FL FINRA Arbitration Attorney Today

At ​Carlson & Associates, P.A., we are always on the side of investors—not financial advisors, securities brokers, or brokerage firms. If you suffered losses due to unsuitable investment recommendations and you are considering bringing a FINRA arbitration claim, we are here to help. Give us a phone call now or contact us online to set up your fully private initial consultation. From our Miami office, we advocate for investor interests in South Florida and throughout the region.

Source:

finra.org/sites/default/files/aao_documents/22-01019.pdf

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