There are options for clients of Centaurus Financial, Inc. broker Bryon Martinsen (CRD# 1621649) who suffered investment losses regarding private placement losses. He has been registered with Centaurus Financial, Inc. in Kings Park, New York since 1999.
In August 2022, FINRA sanctioned him to pay a $10,000 civil and administrative penalty and fine and suspended him for 15 months regarding: “Martinsen consented to the sanctions and to the entry of findings that he participated in private securities transactions by facilitating the sale of approximately $1,100,000 in alternative investments without providing prior written notice to his member firm. The findings stated that Martinsen participated in these transactions by introducing firm customers who wanted to sell their illiquid alternative investments to firm customers who wanted to buy alternative investments, or by Martinsen buying his customers’ alternative investments himself. Martinsen recommended the sales prices for the transactions and assisted the customers with the documents needed to complete the transactions. Martinsen did not receive any commissions or other compensation for his participation in the private securities transactions. Martinsen’s participation in the securities transactions was outside the regular course and scope of his employment with the firm, and Martinsen failed to provide prior written notice to the firm of the transactions or of his role in the transactions.
“Martinsen also falsely denied in three firm annual compliance questionnaires that he had participated in the private securities transactions. The findings also stated that Martinsen made at least 150 payments to certain firm customers, in single or in multiple related payments, totaling approximately $400,000, to compensate them for losses in connection with securities investments that Martinsen had previously recommended. Martinsen made the payments to customers by checks from his personal and business bank accounts. Martinsen did not notify the firm about the payments, nor did he receive prior written authorization from the firm for any of the payments. Martinsen also falsely denied in three annual firm compliance questionnaires that he had made payments to customers in connection with their investment losses.”
Bryon Martinsen Customer Complaints
He has been the subject of 11 customer complaints between 2005 and 2021, one of which was closed without action and one was withdrawn, according to his CRD report. Recent complaints are regarding:
December 2021. “The customer alleges that the Registered Representative overconcentrated the customer’s account(s) in illiquid investments.” The case was settled for $15,801.50. The complaint was regarding real estate security losses.
October 2020. “During the period November 2007 through October 2020, the customers allege that the Registered Representative invested their accounts in unsuitable, high-risk, illiquid investments.” The customer is seeking $3,000,000 in damages. The complaint was regarding variable annuities, direct investments, and real estate securities.
April 2020. “During the period 2013 through April 2020, the customers allege that the Registered Representative misrepresented and concentrated the claimants account(s) in unsuitable investments.” The customer sought $5 million in damages and the case was settled for $985,000. The complaint was regarding variable annuities, direct investments, and real estate securities.
April 2019. “Customer primarily alleges that the financial advisor recommended unsuitable investments and several other allegations associated therewith beginning in 2009 through October 2018.” The customer sought $1.7 million in damages and the case was settled for $217,818.19. This complaint was regarding real estate securities.
February 2019. “Customer primarily alleges that the financial advisor recommended unsuitable investments and several other allegations associated therewith from September 2009 through 2015.” The customer sought $127,000 in damages and the case was settled for $25,000. This complaint was regarding real estate securities.
June 2018. “The client alleges unsuitable investments, misrepresentations, and omission of material risks, in connection with the sale of various investments.” The customer sought $231,244.71 in damages and the case was settled for $10,000. This complaint was regarding real estate securities.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Centaurus Financial, Inc. may be liable for investment or other losses suffered by Bryon Martinsen’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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