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Joseph Michael Todd was fired from Centaurus Financial in July 2022, according to FINRA’s BrokerCheck. Michael Todd was terminated from Centaurus Financial because of claims he sold investments not authorized by the company, a common practice known as “selling away.”

Did Joseph Michael Todd Cause You Investment Losses?

Joseph Michael Todd, also known as Michael Todd, Formerly With Centaurus Financial, Inc. and Investors Capital Corp. Has Three (3) Customer Complaints For Alleged Broker Misconduct.

If you believe you have suffered investment losses resulting from the conduct of Joseph Michael Todd at Centaurus Financial and Investors Capital Corp. you can contact the securities attorneys at The Law Offices of Robert Wayne Pearce, P.A. for a free consultation to discuss your rights.

Who is Joseph Michael Todd formerly with Centaurus Financial, Inc. and Investors Capital Corp.?

Joseph Michael Todd (CRD # 1830390), who was formerly registered with Centaurus Financial, Inc. and Investors Capital Corp. and located in Crystal River, Florida, is the subject of one of our many securities industry sales practice abuse investigations.  Prior to Centaurus Financial, Inc., Joseph Michael Todd was associated with Investors Capital Corp. and other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems.

Joseph Michael Todd Was Terminated by Centaurus Financial, Inc.

On July 21, 2022, Joseph Michael Todd was terminated by Centaurus Financial, Inc. for not cooperating with an ongoing investigation into whether Joseph Michael Todd violated firm policy and industry rules with respect to allegations of selling away and the receipt of customer funds. Our law firm was contacted by a customer of Joseph Michael Todd alleging misappropriation or theft of funds. We are currently investigating such claims and are accepting clients who were victims of Joseph Michael Todd’s alleged misconduct.

Joseph Michael Todd Customer Complaints

Joseph Michael Todd has been the subject of three (3) customer complaints that we know about, one (1) of those complaints was filed in 2022 to recover investment losses.  And One (1) of Joseph Michael Todd’s three (3) customer complaints were settled in favor of investors. However, one (1) of Joseph Michael Todd’s customer complaints was closed, and the customers have not taken any further action. There is currently one (1) pending customer complaint filed against Joseph Michael Todd’s former employer Centaurus Financial, Inc. for investment losses caused by alleged misconduct.

Allegations Against Joseph Michael Todd

A sample of the allegations made in the FINRA reported arbitration claim settlements and/or pending complaints for investment losses are as follows:

  • Clients allege Joseph Michael Todd misrepresented surrender period of annuity and failed to provide contract in a timely fashion
  • Client’s allegations in which she alleges she gave money for Joseph Michael Todd to invest in “other investments” outside of her Edward Jones account.
  • During 2020 through present, the customers allege that Joseph Michael Todd misrepresented illiquid, high risk and unsuitable investments and engaged in selling away from his broker/dealer.

What is Selling Away?

“Selling away” describes the practice of selling securities in unauthorized private transactions outside the regular scope of the broker’s business. Brokerage firms maintain a list of approved securities their brokers are allowed to offer. By approving products ahead of time, brokerage firms ensure that their brokers sell only securities that are vetted and verified as legitimate products. Brokers sell away when they offer their clients securities not on the firm’s approved product list.

Some brokers may choose to ‘sell away’ in order to make extra commissions, rather than sharing with their firm.

Selling away is not always malicious; sometimes, a broker means well but isn’t able to offer the securities a client wants through normal channels. Regardless of the broker’s intent, however, FINRA prohibits selling away and sanctions brokers for doing so.

Can a Broker Steal Client Funds?

Yes, it is possible for a broker to misappropriate or steal client funds. Brokers who have access to their client’s accounts should not take advantage of that access and use the assets in an unauthorized manner.

While theft is not as common as other investment scams, it does happen. When a brokers steals investor money for their own personal use it is called Conversion of Funds.

This criminal behavior does not happen often, but when it does, it is usually by a desperate broker or advisor plagued with gambling debts, drug habit and/or a lifestyle he or she cannot afford to pay for without stealing from clients.

Joseph Michael Todd Red Flags & Your Rights As An Investor

Of course, Joseph Michael Todd did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags that should put all current and former customers of Joseph Michael Todd at Centaurus Financial, Inc. and Investors Capital Corp. on alert to review carefully the activity and performance of their accounts and question whether Joseph Michael Todd has engaged in any stockbroker misconduct that may have caused them investment losses. The customer complaints at Centaurus Financial, Inc. and Investors Capital Corp. also raise questions about the brokerage firms’ supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.

File A Claim To Recover Your Investment Losses At Centaurus Financial, Inc., and Investors Capital Corp. Due To Joseph Michael Todd

If you have questions about Centaurus Financial, Inc. and/or Investors Capital Corp. and Joseph Michael Todd and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $160 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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