Oakes and Fosher files a new arbitration against Centaurus Financial for the actions of stockbroker John Starke.
Oakes and Fosher, LLC has initiated a new FINRA arbitration against Centaurus Financial based on the actions of John Starke. Our complaint alleges that Mr. Starke concentrated our client on alternative investments, such as the priority income fund, and that he made various misrepresentations in selling it and other non-traded real estate investment trusts (REITs) and alternative investments. As a result, we’re holding John Starke accountable for his actions by filing a Centaurus Financial lawsuit.
Have you suffered losses from stockbroker John Starke of Centaurus Financial recommending unsuitable alternative investment products? Contact the securities fraud attorneys of Oakes & Fosher today for a free consultation and review. We operate on a contingency fee basis, meaning that you don’t pay us unless we collect for you.
Mr. Starke’s Misconduct
According to Mr. Starke’s broker check record, he has had 7 new customer complaints filed in the last 14 months. These complaints are consistent in that the customers allege they were sold illiquid alternative investments, which were inappropriate recommendations. The customers also allege that Mr. Starke misrepresented these products.
Inappropriate Recommendations & Misrepresentation
Oakes and Fosher is investigating the claims by other customers who were sold alternative investments such as the following. These products are illiquid and, in most cases, speculative and high-risk.
- Priority Income Fund: The Priority Income Fund is a closed-end investment fund that invests in senior secured loans and collateralized loan obligations (CLOs). Senior secured loans have a first lien on the borrower’s assets, meaning the lender has the right to seize and sell those assets if the borrower defaults. CLOs are pools of senior secured loans categorized into different tranches, each with a risk and return profile. It’s important to note that the Priority Income Fund is a speculative investment with high risk. Investors should consider their objectives and risk tolerance before investing.
- Hartman REIT: Hartman REIT was a publicly traded real estate investment trust that invested in commercial properties in Texas. On December 26, 2022, the company changed its name to Silver Star Properties REIT. However, investing in the Hartman (now Silver Star Properties) REIT contains a high level of risk and is not suitable for every individual.
- Moody’s REIT II: As a non-traded REIT, Moody’s REIT II invests in hospitality real estate. Its portfolio includes 14 hotels in major metropolitan areas across the country. However, the investment was greatly affected by the COVID-19 pandemic and experienced a notable drop in its share price. It’s considered a risky investment and is, therefore, unsuitable for numerous investors.
- GWG L Bonds: GWG L Bonds were privately held investments issued by GWG Holdings, Inc., a company investing in life insurance policies on the secondary market. They were high-yield bonds with maturities ranging from six months to seven years. Interest rates varied depending on the term length but were typically higher than other bonds. However, these bonds were considered risky since they were unrated, speculative, and illiquid. GWG Holdings, Inc. has since filed for bankruptcy.
The Issue With Privately Traded Investment Products
Privately traded investment products do not trade on any exchange, and the prices are set by the sponsor of the products. As a result, it is difficult to understand whether you have lost money until much later, when the product may be in financial trouble, halt distributions, or even file for bankruptcy. The alternative investment loss attorneys of Oakes & Fosher are here to help.
Seek Assistance from Experienced Attorneys in Filing a Centaurus Financial Lawsuit
If John Starke of Centaurus Financial has sold you an alternative investment, please contact Oakes & Fosher, LLC, for a free consultation and review of your investments. Oakes & Fosher handles all cases on a contingency fee basis, meaning that you only pay attorneys fees if we collect for you. We’ve tried and won more cases in FINRA arbitration in the last 12 years than any other attorney in the country.
Contact us today for assistance in filing a Centaurus Financial lawsuit from the actions of stockbroker John Starke.