Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joseph Todd (Todd), previously associated with Centaurus Financial, Inc., has at least 15 disclosable events. These events include 13 customer complaints, 2 regulatory events, alleging that Todd recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $84,000.00 on August 22, 2024.
The customer alleges that in December 2019, the Registered Representative recommended and misrepresented an unsuitable, illiquid investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on January 17, 2024.
The customer alleges that in December of 2020, the Registered Representative recommended an unsuitable investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $170,000.00 on December 06, 2023.
Claimant alleges that the Registered Representative misappropriated her funds. No specific dates for the alleged activity were identified in the Statement of Claim.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $138,000.00 on November 30, 2023.
Claimant alleges that the Registered Representative recommended and sold outside products that were unsuitable. No specific dates for the alleged activity were identified in the Statement of Claim.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $300,000.00 on October 11, 2023.
The customer alleges that the Registered Representative absconded with his funds. No specific dates for the alleged activity were identified in the Statement of Claim.
FINRA BrokerCheck shows a final customer complaint on August 17, 2023.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Joseph Michael Todd (‘Todd’ or ‘Respondent’). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the ‘Offer’) which the Commission has determined to accept. The Commission finds that on July 27, 2023, a judgment was entered by consent against Todd, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and from participating in the issuance, purchase, offer, or sale of any security (except for purchasing or selling securities in his own personal account), in Civil Action Number 5:23-cv-00431, in the United States District Court for the Middle District of Florida. The Commission’s complaint alleged that from at least August 2016 through at least November 2022, in connection with the offer, purchase, and sale of securities, Todd misappropriated investor funds, falsely stated to investors that their funds would be invested in securities, sent out false account statements indicating that investors’ funds were fully invested and earning returns, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $492,000.00 on August 08, 2023.
The customers allege that the Registered Representative absconded with their funds.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $99,500.00 on July 25, 2023.
The customer alleges that the Registered Representative absconded with her funds and never invested the money. It is worthy to note that Centaurus is unable to verify that the claimant was a client of Centaurus.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,001.00 on July 17, 2023.
In March 2019, the customer alleges that the Registered Representative misrepresented unsuitable, high risk, high commission and illiquid Alternative Investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $900,000.00 on July 06, 2023.
During the period of August 2021 through July 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable, illiquid and high-risk investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on June 26, 2023.
The customer alleges that in July of 2019, the Registered Representative misrepresented a non-profit organization and engaged in undisclosed outside business activities.
FINRA BrokerCheck shows a settled customer complaint on June 02, 2023.
During the period of March 2018 through September 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable and high-risk investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $152,400.00 on June 02, 2023.
In June 2022, the customer alleges that the Registered Representative misappropriated funds.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $238,000.00 on June 01, 2023.
During the period of 2019 and 2021, the customer alleges that the Registered Representative improperly recommended high risk and a illiquid investment and misappropriated funds.
FINRA BrokerCheck shows a final customer complaint on April 25, 2023.
Respondent Todd failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Todd has been in the securities industry for more than 33 years. Todd has been registered as a Broker with Centaurus Financial, Inc. since 2016.
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.
