Atul Makharia The Focus Of Centaurus Financial Clients’ Unsuitable Recommendations Claims

Investors apparently complained about securities broker Atul Makharia [CRD: 5070762, Lexington, South Carolina], according to public information on FINRA BrokerCheck. Evidently, Makharia has been registered with Centaurus Financial Inc. since May 19, 2015, and also registered as an investment adviser representative with the same firm since April 29, 2024. Read on to learn more about Makharia’s disclosures and what investors should know.

Centaurus Financial Client Accused Makharia Of Breach Of Fiduciary Duty

Notably, on September 25, 2023, a Centaurus Financial Inc. client filed FINRA Arbitration No. 23-02602 about Atul Makharia. Mainly, the client alleged that Makharia made unsuitable recommendations and breached his fiduciary duty. Because of this, the investor allegedly sustained damages associated with corporate bonds and real estate securities. Consequently, the client requested $499,000 in compensation from Centaurus Financial Inc. or Makharia. It appears that this arbitration is pending a resolution.

Atul Makharia Disclosed Unsuitable Recommendations Allegations By Centaurus Financial Client

Specifically, a client of Centaurus Financial Inc. contested Atul Makharia’s sales practices by filing FINRA Arbitration No. 23-01201. Allegedly, Makharia made unsuitable recommendations of risky, speculative, and illiquid investments. It appears that Makharia caused the client to sustain damages linked to corporate bonds. Therefore, Centaurus Financial Inc. opted to settle the matter on March 6, 2024, by compensating the client in the amount of $14,500.

United States Securities And Exchange Commission Sanctioned Makharia For Unsuitable Advice

Particularly, on February 6, 2023, the United States Securities and Exchange Commission issued Case: 3-21295 sanctioning Atul Makharia for infractions. Specifically, Makharia was ordered to cease and desist, fined $35,000, and suspended for six months. Evidently, the SEC alleged that Makharia recommended variable rate structured products to investors for whom such investments were unsuitable.

The SEC found that while associated with Centaurus Financial Inc. in Lexington, South Carolina, Makharia and other representatives advised investors nearing retirement who had low income, modest net worth, and limited risk tolerance to purchase variable rate structured products inconsistent with their financial circumstances and investment objectives. The Commission determined that these recommendations violated Sections 17(a)(2) and 17(a)(3) of the Securities Act. Without admitting or denying the findings, Makharia consented to the entry of the cease-and-desist order, a civil penalty of $35,000, and a six-month suspension from association with any broker, dealer, investment adviser, or related entity, effective February 20, 2023, through August 19, 2023.

Atul Makharia Disclosed Misrepresentation Allegations By Centaurus Financial Inc. Client
Additionally, a client of Centaurus Financial Inc. disputed Atul Makharia’s sales practices by filing FINRA Arbitration No. 22-02098. Allegedly, Makharia misrepresented high-risk and illiquid investments, including corporate bonds and real estate securities. It appears that Makharia caused the client to sustain damages connected to these investments. As a result, Centaurus Financial Inc. opted to settle the matter on January 29, 2024, by compensating the client in the amount of $18,500.

Have You Made Investments Through Financial Advisor / Securities Broker Makharia?

Are you concerned regarding investments you made with Atul Makharia? You can get in touch with Soreide Law Group at (888) 760-6552 or online and talk with a securities lawyer concerning a possible recovery of your investment losses. For more than a decade, Soreide Law Group has recovered losses for investors throughout the country. Also, the firm works on a contingency fee arrangement and advances all costs. Makharia and brokerage firms Makharia worked for deny accusations of sales practice violations.