ATUL MAKHARIA of CENTAURUS FINANCIAL

Soreide Law Group has been contacted by investors who purchased GWG L Bonds from CENTAURUS FINANCIAL of Lexington, South Carolina, broker, ATUL MAKHARIA.

GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court on April 20, 2022. Many investors, often elderly and retired, were not made aware of the true nature of this risky product.

ATUL MAKHARIA is currently registered as a broker since 5/19/2015, and as an investment advisor since 4/29/2024 with CENTAURUS FINANCIAL, INC of Lexington, South Carolina. 

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, ATUL MAKHARIA has been in the securities industry for 19 years and has been listed with 4 firms.  Makharia has 13 disclosures on his FINRA CRD report.  Of the 13 disclosures, 1 is a “Regulatory,” and 12 are “Customer Disputes.” The significance of ATUL MAKHARIA’s 12 “Customer Disputes” is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. In other words, Makharia’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

The “Regulatory” issued on 2/6/2023 against ATUL MAKHARIA was initiated by the UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC) and resulted in a cease-and-desist order, fines of $35,000.00, and a suspension of six months. The SEC’s administrative proceeding dated Feb. 6, 2023, says in part, “The SEC’s order finds that, between June 2016 and July 2019, Makharia and seven other registered representatives from Centaurus’ Lexington, South Carolina branch office made recommendations of VRSPs to ninety-four retail customers for whom the recommendations were unsuitable in light of each of the specific customers’ financial situations and needs.  According to the SEC’s order, Makharia made fifty of these unsuitable recommendations to thirty customers.  The SEC’s order further finds that Centaurus failed to implement, and Mantei failed to follow, Centaurus’ customer-specific suitability procedures and that Centaurus violated the broker-dealer books and records provisions of the federal securities laws.”

Of the 12 “Customer Disputes,” 10 have settled, 1 is pending, and 1 is closed with no action.  A sampling of the allegations listed include, “In December 2018 and February 2019, the customers allege that the Registered Representative recommended speculative, high-risk and an illiquid investment,” and “The customer alleges that the Registered Representative misrepresented unsuitable, high-risk, speculative and illiquid investments. No dates for the alleged activity were disclosed in the Statement of Claim.”

ATUL MAKHARIA, in the BrokerCheck Broker Comment denies the allegations.

To discuss this article or any other securities issues, contact Soreide Law Group and speak to an experienced securities lawyer at no cost at:  888-760-6552.

Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis.