ATLANTA and COLUMBIA, S.C., May 7, 2019 /PRNewswire/ -- The Doss Firm LLC said today that its investigation of Centaurus Financial Inc. is continuing after the filing of fraud claims against the firm on behalf of a South Carolina retiree.
This week, the Doss law firm filed claims with the Financial Industry Regulatory Authority, Inc. (FINRA) on behalf of a retired Flour Corp. engineer, alleging that Centaurus advisers Cindy Chiellini and Katherine Nishnic mismanaged his IRA account by over-concentrating it in complex, high-risk, speculative and illiquid structured CDs, structured notes, foreign bonds, and non-traded REITs.
The case is "Tom Dabbs v. Centaurus Financial Inc.," FINRA Arbitration Case No. 19-01250.
Jason Doss, of The Doss Firm LLC, said, "This is a case about how a Centaurus customer entrusted his hard-earned retirement savings to financial advisers we allege violated industry rules and the law. The complaint details how the firm allegedly engaged in speculative trading that was wholly unsuitable for his investment objective and risk tolerance, misrepresented the essential features of the securities sold to him, and failed to accurately disclose the risks of the investments."
Centaurus also is accused in the complaint of failing to adequately supervise its registered representatives in the Dabbs case, Ms. Chiellini and Ms. Nishnic of the firm's Lexington, S.C. office.
Mr. Doss added, "Our investigation and regulatory records indicate that Ms. Chiellini and Ms. Nishnic have been the subject of 15 customer complaints between them, all involving allegations of unsuitable investment recommendations. We have received complaints from other investors and, as a result, we have reason to believe that that Ms. Chiellini and Ms. Nishnic, as agents of Centaurus, engaged in a one-size-fits-all scheme that involved selling high-commission structured CDs, structured notes, foreign bonds and non-traded REITs to their clients regardless of whether it was appropriate."
Non-traded REITs, like those sold to Mr. Dabbs, are perennial "Top Ten Investor Traps" identified by the North American Securities Administrators Association, the organization of state securities regulators.
The complaint includes alleged violations of the State Uniform Securities Act, breach of fiduciary duty, common law and constructive fraud, fraudulent concealment, negligent misrepresentation, breach of contract, breach of duty, negligence and unsuitable trading. Mr. Dabbs seeks damages, disgorgement of commissions, punitive damages, attorneys' fees, and interest.
SOURCE The Doss Firm LLC