CENTAURUS & OTTO BOHON GWG Lawsuit

Soreide Law Group filed a FINRA arbitration on behalf of our client (Claimant) against:

CENTAURUS FINANCIAL, INC. (Centaurus), and their former registered representative,

OTTO RAMON BOHON (Otto Bohon) (Respondents).

The Claimant is retiree living in Colorado. The lawsuit states that the Claimant was referred to Centaurus’ registered representative, Otto Bohon, in 2018 to allegedly help prepare for retirement. The lawsuit alleges the Claimant was clear with the Respondents that he was looking for conservative investments that generate income to sustain him through retirement without any risk of loss to his principal.

According to the lawsuit, in March of 2019, Otto Bohon recommended that $100k of the Claimant’s retirement funds be invested into GWG Holdings “L” bonds.  Allegedly, Otto Bohon described GWG as safe, secure and asset backed but allegedly did not mentioned that the company was losing millions of dollars in bad investments. GWG was reliant upon new investor funds to stay afloat.

In April of 2022, GWG Holdings filed Chapter 11 bankruptcy which could potentially wipe out a significant portion of the Claimant’s savings. L Bonds are high risk investments that are unrated, speculative, and illiquid.  These private placements were used to buy life insurance policies on the secondary market.  GWG sells “L” Bonds through a large network of independent brokerage firms to their clients. GWG Holdings owes L Bond investors millions of dollars, but the redemption payments are suspended, and investors have no way of getting rid of their bonds.  Many investors were not made aware of the true nature of this risky product.

The lawsuit alleges that Centaurus and their former registered representative, Otto Bohon’s actions have caused damages to the Claimant of approximately $100,000.00.  The lawsuit is claiming:  negligence, negligent supervision, and breach of fiduciary duty.  It is assumed the Respondents will deny all allegations.

According to FINRA’s BrokerCheck, Otto Bohon, was in the securities industry for 10 years and was previously registered both as a broker and as an investment advisor.  Bohon has 5 disclosures on his FINRA CRD report, all 5 are “Customer Disputes.”  Bohon is currently not registered but had been registered with 3 firms, the most recent listed below:    

07/20/2012 - 10/02/2020  CENTAURUS FINANCIAL INC - TUCSON, AZ  

If you or a loved one were sold GWG L Bonds by CENTAURUS FINANCIAL INC of Tucson, Arizona, and/or their registered representative, Otto Bohon, contact Soreide Law Group, and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.  

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