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.’
FINRA BrokerCheck shows a pending customer complaint on August 21, 2024.
During the period of 2017 through 2024, the Claimant’s allege that While selling shares in a Private Placement company via a Private Placement memorandum, away from Broker Dealer, the Registered Representative engaged in unfair business practices, provided untrue statements, constructive fraud, neglect misrepresentation, financial elder abuse, and breached his fiduciary duty.
Our legal team has a wealthy experience handling cases where advisors defraud clients by securing loans or selling securities through OBAs. In the financial industry, “selling away” refers to the sale of unapproved investment products, fake schemes that conceal stolen funds, and other fraudulent activities, representing a significant violation of securities regulations. The term “selling away” in the industry refers to financial advisors promoting investments in businesses, promissory notes, or securities that their affiliated brokerage firm has not approved. While some of these investments may have a degree of legitimacy, they often turn out to be Ponzi schemes or involve advisors misappropriating funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. Each firm is obligated to enforce measures that oversee brokers by monitoring advisors’ conduct and their interactions with clients. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Martin entered the securities industry in 2000. Martin has been registered as a Broker with Centaurus Financial, Inc. since 2006.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
