According to the Financial Industry Regulatory Authority (FINRA), Centaurus Financial, Inc. (Centaurus) broker, Robert Horning (Horning) has at least eight (8) customer complaints on his record. In their complaints, the customers alleged unsuitable investments, fraud, negligence, misrepresentations, false statements and breach of fiduciary duty. Horning has spent 22 years in the securities industry, since 2009 he has been associated with Centaurus. Horning was previously associated with Direct Capital Securities in Austin, Texas from 2004-2009; MCL Financial Group in Santa Ana, California from 2003-2004; NNN Capital in Santa Ana, California from 1995-2003.
Many of the customer complaints involved investments in private placements. Horning allegedly recommended investments in high risk, high commission investments such as oil and gas funds, non-traded REITs, equipment leasing programs and tenancies-in-common (TICs). Investors have sought over $1 million in damages in their claims against Horning.
Investments in TICs, non-traded REITs, equipment leasing programs and oil and gas interests tend to be inappropriate investments for individuals with moderate risk tolerance. Brokers are often incentivized to recommend these programs because of the high commission rate (as much as ten percent) that these investments often carry.
When a broker recommends that a client purchase or sell a security, the broker must have a reasonable basis for believing that the recommendation is suitable for the investor. In making this assessment, a broker must consider the investors income and net worth, investment objectives, risk tolerance, and other security holdings
If you believe that you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and ions. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or email@example.com for a no-cost, confidential consultation.