Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Christopher Martin (Martin) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Martin was employed by Centaurus Financial, Inc. at the time of the activity. If you have been a victim of Martin’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on January 14, 2025.
Without admitting or denying the findings, Martin consented to the sanctions and to the entry of findings that he participated in private securities transactions related to a private offering of common stock issued by a licensed cannabis-related company that he co-founded and for which he served as a board member and executive officer without prior written notice to, or approval from, his member firm. The findings stated that Martin disclosed his role with the company to the firm as an OBA. However, Martin did not disclose his subsequent participation in the company’s efforts to raise capital or receive approval from the firm to participate in such efforts. Specifically, Martin participated in the company’s sale of $4,436,381 of company stock to 106 investors through the private offering. Martin introduced certain of these investors to the investment opportunity, including his customers at his firm. In addition, Martin presented information on the offering and the company’s business plan to prospective investors, answering the questions of prospective investors about the offering and the company’s business, and, at times, facilitating investors’ transactions by accepting investor subscription agreements. During his presentations to prospective investors, Martin provided written disclosures that stated that he was acting in his capacity as an executive officer of the company, not as a financial advisor, and that the firm was not involved with, and did not recommend, the investment. At time of purchase, investors signed an acknowledgement form containing similar representations. Furthermore, on six annual compliance questionnaires, Martin inaccurately attested that he had not engaged in any private securities transactions, including ‘the raising of capital through stock, bond or note offerings.’
