August 2, 2016 Comments (0) Current Investigations

Centaurus Financial: Alternative Investment losses?

(Last Updated On: January 11, 2017)

Have you suffered losses investing in Centaurus Financial? The White Law continues to investigate Centaurus Financial for recommending risky, unsuitable alternative investments to their clients.

The trouble with alternative investment products, like Core Realty Series A Debenture and Hines REIT is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  If the broker fails to perform the necessary due diligence on these investments prior to recommending them to these particular investors, the investor has recourse in FINRA Dispute Resolution.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on The White Law Group’s arbitration claims against Centaurus Financial, see FINRA arbitration filed against Questar Capital and Centaurus Financial to recover investment losses Or, Lawsuit filed against Centaurus Financial to recover alternative investment losses.

For more information on the claim filed by The White Law Group, please contact the firm’s Chicago office at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.