Center Street Securities: 5 Regulatory Complaints
Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 11, 2019 indicate that Tennessee-based brokerage firm Center Street Securities has received regulatory sanctions. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Center Street Securities (CRD# 26898).
Established in Louisiana in 1990, Center Street Securities is headquartered in Nashville, Tennessee and registered with 52 US states and territories. According to its BrokerCheck report, the firm has received five regulatory sanctions.
In 2017 the North Carolina Department of Insurance sanctioned Center Street Securities in connection to allegations it did not disclose, on an application for renewal, previous disclosures, including: allegations that it failed to establish and maintain supervisory procedures concerning the review of external email conducts used to conduct firm business and the recommendation of unsuitable renewable debentures. In connection with these findings, the firm was ordered to pay a fine of $1,250.
In 2016 the Ohio Department of Insurance sanctioned Center Street Securities in connection to allegations it erroneously answered “no” in response to a question about whether it had been involved in previously unreported administrative actions. In connection with these findings, the firm was issued a fine of $500.
In 2015 FINRA sanctioned the firm in connection to allegations that for three years it failed to perform branch inspections of 18 “non-supervisory branches,” and additionally that the firm did not establish, maintain and enforce a supervisory system adequately designed for the review and supervision of consolidated account records which representatives created and gave to customers. In connection with these allegations, the firm was censured and issued a fine of $50,000,
In 2014 FINRA sanctioned the firm in connection to allegations that via numerous of its representatives it recommended that customers purchase unsuitable renewable secured debentures, which FINRA describes as “illiquid” and “high-risk.” According to FINRA’s findings, firm representatives made more than 34 such unsuitable recommendations, as well as recommendations that included misrepresentations of material facts, to customers who included elderly persons and retirees. According to FINRA’s findings, these recommendations led to the sale of more than $3 million in investments which FINRA states were unsuitable for the customers’ conservative investment objectives and need for principal security, as well as the clients’ ages, given that the investments comprised “an excessive concentration of customers’ net worth” in high risk securities. FINRA’s findings also state that the firm failed to maintain a supervisory system adequate to supervise the sales of debentures, and to take reasonable steps to ensure the suitability of debenture sales. In connection with these findings, the firm was censured and issued a fine of $100,000. It was also ordered to pay disgorgement of about $27,000.
In 2013 FINRA sanctioned the firm in connection to allegations it failed in its supervisory duties with respect to the monitoring of its associated persons’ use of external email accounts to conduct firm-related business. In connection with these findings, the firm was censured and issued a fine of $30,000.
If you have lost money investing with Center Street Securities, you may be able to recover your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.