Securities Lawyers Blog
According to BrokerCheck records financial advisor Dana Hawkins (Hawkins), currently employed by Centaurus Financial, Inc. (Centaurus Financial) has been subject to three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Hawkins’ customer complaints allege that Hawkins made unsuitable recommendations in certain structured products.
Our firm has brought cases against brokers for misrepresenting the features of structured products or selling them as a bond alternative. Structured products are typically debt instruments where the payout is based on the underlying stock, equity index, currency, or any reference source. Many, but not all, structured products are advertised as having some principal protection component – meaning that the investor is guaranteed the return of some amount of their initial investment. However, studies have shown that structured products are often best used as a niche product for sophisticated investors employing complicated strategies. The typical investor cannot benefit from these products over traditional investments.
In February 2019 a customer filed a complaint alleging that Hawkins violated the securities laws by, among other things, that Hawkins sold unsuitable investments and several other allegations associated from activity in late 2013 to early 2019. The customer alleged $253,757 in damages. The claim is currently pending.