Can I recover losses from investments with former Centaurus Financial, Inc. broker Joseph Todd (CRD# 1830390) who is accused of unsuitable investment recommendations and selling away?
He was registered with Centaurus Financial, Inc. in Crystal River, Florida, from 2016 to 2022, when he was terminated regarding “the firm is investigating whether the registered representative violated firm policy and industry rules with respect to an allegation of selling away and the receipt of customer funds. The registered representative has not cooperated with the investigation. The investigation is ongoing.” Previously, he was registered with Investors Capital Corp. in Homosassa, Florida, from 2007 to 2016.
In April 2023, FINRA suspended him indefinitely following allegations that he “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.”
In July 2023, the Securities and Exchange Commission (SEC) settled charges about the broker and his entities Todd Financial Services, LLC and TFS Insurance Services LLC related to defrauding at least 20 brokerage customers, many of whom were elderly or disabled individuals, of at least $3 million. According to the SEC complaint he “obtained investor funds through deceptive means by instructing his brokerage customers to write checks payable to TFS, TFS Insurance, or Todd by falsely assuring customers that he and his entities would invest the customers’ funds in various securities. As alleged, Todd instead misappropriated investors’ funds and kept the money for his own personal use, spending it on real estate, boating, hunting, casinos, and adult entertainment.”
The SEC complaint alleges that to conceal his scheme, the broker “presented defrauded customers with forged account statements or portfolio holdings statements that contained falsified entries indicating the customers were invested in the products promised by Todd.” According to the SEC complaint, he also “made Ponzi-like payments to at least one customer by using other customers’ funds to make regular deposits from a TFS bank account into this customer’s account, which he falsely claimed were interest payments or regular distributions on an investment.”
In August 2023, the Securities and Exchange Commission (SEC) barred him in connection with the offer, purchase, and sale of securities. The SEC found that he “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.”
Joseph Todd Customer Complaints
He has been the subject of 18 customer complaints between 2001 and 2024, one of which was closed without action, according to his CRD report. The most recent complaints were regarding:
January 2024. “The customer alleges that in December of 2020, the Registered Representative recommended an unsuitable investment.” The customer is seeking $50,000 in damages. The complaint was regarding corporate debt.
December 2023. “Claimant alleges that the Registered Representative misappropriated her funds. No specific dates for the alleged activity were identified in the Statement of Claim.” The customer is seeking $170,000 in damages.
November 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.” The customer is seeking $138,000 in damages. The complaint was regarding common and preferred stocks, oil and gas energy sector losses, and real estate securities.
October 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.” The customer is seeking $300,000 in damages.
August 2023. “The customers allege that the Registered Representative absconded with their funds.” The customer sought $492,000 in damages, and the case was settled for $240,000.
July 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.” The customer sought $99,500 in damages, and the case was settled for $34,000.
July 2023. “In March 2019, the customer alleges that the Registered Representative misrepresented unsuitable, high risk, high commission and illiquid Alternative Investments.” The customer sought $100,001 in damages, and the case was settled for $47,500. The complaint was regarding corporate debt and real estate securities.
July 2023. “In March 2019, the customer alleges that the Registered Representative misrepresented unsuitable, high risk, high commission and illiquid Alternative Investments.” The customer sought 100,001, and the case was settled for $47,500. The complaint was regarding corporate debt and real estate securities investment losses.
July 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.” The customer sought $900,000 in damages, and the case was settled for $352,500. The complaint was regarding common and preferred stocks, non-investment related client funds, and real estate securities investment losses.
June 2023. “The customer alleges that in July of 2019, the Registered Representative misrepresented a non-profit organization and engaged in undisclosed outside business activities.” The customer sought $100,000 in damages, and the case was settled for $51,300.
June 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.” The case was settled for $225,000.
June 2023. “In June 2022, the customer alleges that the Registered Representative misappropriated funds.” The customer sought $152,400 in damages, and the case was settled for $112,000.
June 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.” The customer is seeking $238,000 in damages. The complaint was regarding corporate debt and non-investment related client funds.
March 2023. “During August 2021 through July 2022, the customers allege that the Registered Representative incorrectly exercised trading discretion and recommended illiquid investments.” The customer is seeking $130,000 in damages. The complaint was regarding common and preferred stocks and real estate securities investment losses.
January 2023. “During the period of 2020 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.” The case was settled for $615,625.72
December 2022. “During 2014 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.” The customer sought $16,500 in damages, and the case was settled for $10,000. The complaint was regarding real estate securities investment losses.
May 2022. “During 2020 through present, the customers allege that the Registered Representatives misrepresented illiquid, high risk and unsuitable investments and engaged in selling away from his broker/dealer.” The customer sought $500,000 in damages. The case was settled for $60,000 in compensatory damages as well as $37,500 in lawyer fees and a $300 non-refundable portion of the filing fee. The complaint was regarding real estate securities and mortgage fund investments.
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 Joseph Todd’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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