Center Street Securities, Inc. (“Center Street Securities”) (CRD#26898) has many different complaints filed by FINRA (Financial Industry Regulatory Authority) and state regulatory organizations. At the Law Offices of Robert Wayne Pearce, we have investigated Center Street Securities, its regulatory complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against organizations such as Center Street Securities.
If you believe you have a claim against Center Street Securities, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Center Street Securities?
If you’ve lost money caused by Center Street Securities and/or its employees’ misconduct then the answer is, YES, you can sue Center Street Securities, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Center Street Securities in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Center Street Securities is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Center Street Securities?
Center Street Securities (CRD#26898) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Center Street Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Center Street Securities Has Many Different Regulatory Problems
Center Street Securities’ rapid growth has not been without consequences. There have been approximately 6 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Center Street Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
A Brief Overview of Some of the Regulatory Problems Center Street Securities Has Faced Over the Years*
Center Street Securities has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Censures and Fines Center Street Securities for Limited Partnership Sales Before Completion of an Audit
Brief Overview: Without admitting or denying the findings, Center Street Securities consented to the sanctions and to the entry of FINRA findings that it negligently failed to inform investors in offerings related to an alternative asset management firm that the issuers failed to timely make required filings with the SEC, including filing audited financials. FINRA stated that the firm sold limited partnership interests in private sector companies after being notified that the delivery of the issuers’ audited financials would be delayed pending the completion of an audit. The sales totaled $1,206,000 and the firm received a total of $98,727.50 in commissions from such sales. However, representatives of the firm did not inform customers that the issuers had not timely filed their audited financials with the SEC or the reasons for the delay. As a result, the firm was censured and fined $70,000.
FINRA Censures and Fines Center Street Securities for Failure to Inspect 18 Branches in Three Years
Brief Overview: Without admitting or denying the findings, Center Street Securities consented to the sanctions and to the entry of FINRA findings that it failed to conduct branch inspections for 18 non-supervisory branches within a three-year period. FINRA stated that Center Street Securities also failed to establish, maintain, and enforce a reasonable supervisory system and written supervisory procedures for the review and supervision of consolidated account reports produced by registered representatives and provided to its customers. As a result, the firm was censured and fined $50,000.
FINRA Censures and Fines Center Street Securities for Unsuitable Recommendations of Secured Debentures
Brief Overview: Without admitting or denying the findings, Center Street Securities consented to the sanctions and to the entry of FINRA findings that through several registered representatives, it made unsuitable recommendations to customers to purchase renewable secured debentures, an illiquid and high-risk alternative investment. FINRA stated that the firm’s registered representatives made 34 unsuitable recommendations and recommendations containing misrepresentations to purchase the debentures to 28 customers, including elderly customers and retirees, and resulted in the sale of more than $3 million. Such recommendations were unsuitable because the investments were inconsistent with the customers’ stated conservative investment objectives and need for safety of principal, and the customers’ ages. In addition, the purchases represented an excessive concentration of the customers’ net worth in a speculative and high-risk security. FINRA also stated that the firm failed to maintain an adequate supervisory system and adequate written supervisory guidelines and failed to reasonably supervise the sales of debentures by its representatives. As a result, the firm was censured and fined $100,000.
FINRA Censures and Fines Center Street Securities for Failure to Supervise Associated Persons’ Use of External Email Accounts
Brief Overview: Without admitting or denying the allegations, Center Street Securities consented to FINRA findings that the firm failed to establish, maintain, and enforce adequate supervisory systems and written supervisory procedures to appropriately monitor use by its associated persons of external email accounts to conduct firm-related business. According to FINRA, at least 35 associated persons used external email accounts for business purposes, but the emails were not captured by the firm’s email system for retention and review. As a result, the firm was censured and fined.
*Above are only some of the regulatory disciplinary actions filed against Center Street Securities by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.
Center Street Securities Customer Complaints
There have been scores of customer complaints filed against Center Street Securities stockbrokers and investment advisors over the years. We have launched many investigations of current and former Center Street Securities advisors:
- Satya Shaw of Center Street Securities, Inc
- Dustin Terry of Center Street Securities
- David Ermlick Formerly With Center Street Securities
- Lawrence Hardee of Center Street Securities
- Esa Jokela of Center Street Securities
- Donald Quante formerly with Center Street Securities, Inc.
- Michael Ecker formerly with Center Street Securities, Inc.
- Roy Williams, Sr. of Center Street Securities, Inc.
- Sean Kelly formerly with Center Street Securities, Inc.
- Michael Mirich of Center Street Securities, Inc.
- James Schrack of Center Street Securities, Inc.
- Seth Stewart formerly with Center Street Securities, Inc.
- Joseph Latour of Center Street Securities, Inc.
- Michael Corrada formerly with Center Street Securities, Inc.
- James Margraf of Center Street Securities, Inc
- James Jones of Center Street Securities
- James Saar of Center Street Securities, Inc
- Christopher Wright of Realta Equities, Inc
If you have lost money investing with any of these Center Street Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Center Street Securities Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Center Street Securities Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Center Street Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Center Street Securities without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Center Street Securities Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Center Street Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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