CENTAURUS FINANCIAL INC and STUART J SPIVAK

Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against:

CENTAURUS FINANCIAL, INC (Respondent).

The Claimants reside in Arizona and are retired. The Claimants were seeking stable investments that would provide them with income.  The lawsuit states that the Claimants have a long-standing relationship with CENTAURUS FINANCIAL and its Financial Advisor, STUART J SPIVAK.

According to the lawsuit, STUART J SPIVAK allegedly told the Claimants that he could meet their investment needs without taking on unnecessary risks. The lawsuit states that the Claimants were sold a $100,000.00 speculative investment in CMCT Series A1 Preferred stock. The lawsuit alleges that the Claimants were not adequately warned about the illiquid nature of the recommendation or that Claimants could potentially lose 96% of the investment in just 4 years.

The lawsuit alleges that the Respondent’s recommendation was a violation of Regulation Best Interest by offering an investment that allegedly generated a large commission for an investment with nearly unlimited risk to retirees.

The lawsuit is alleging negligence, breach of fiduciary duty, negligent supervision, breach of contract, and violations of NASD and NYSE rules.  The lawsuit is asking for $96,000.00 plus interest and costs in damages.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, STUART J SPIVAK has been registered both as a broker and investment advisor with CENTAURUS FINANCIAL, INC. of Scottsdale, Arizona since 2008.  Spivak has been in the securities industry for 37 years and has been listed with 6 firms.

STUART J SPIVAK has 9 disclosures on his FINRA CRD report.  All 9 disclosures on Spivak’s FINRA report are “Customer Disputes.” Of the 9 disputes, 4 have settled, 1 was withdrawn, 3 were closed with no action, and 1 was denied. The significance of Spivak’s disclosures 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, STUART J SPIVAK’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

Of the settled “Customer Disputes” filed against STUART J SPIVAK, some of the allegations were in part,” the customer alleges that he recommended unsuitable, high-risk, illiquid investments and breached his fiduciary duty,” and, “SECURITIES FRAUD, COMMON LAW F-RAUD, BREACH OF WARRANTY AND BREACH OF- CONTRACT IN CONNECTION WITH THE SALE OF A VARIABLE LIFE INSURANCE POLICY.” Spivak 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.