The law firm of Oakes & Fosher, LLC recently filed an arbitration on behalf of investors against Centaurus Financial regarding brokerage accounts handled by FINRA licensed broker Timothy Tremblay. According to his publicly available FINRA BrokerCheck report, Timothy Tremblay has been the subject of numerous customer complaints dating all the way back to 1989. These complaints encompass a wide variety of allegations.

Timothy Tremblay is presently working as a California based securities broker. He has worked in the securities industry for thirty-five years. During his career, he has been registered with six different securities firms.

His Registrations 

  • Painewebber Incorporated (1986)
  • Prudential Securities Incorporated (1983-1993)
  • Smith Barney Inc. (1993-1995)
  • Cruttenden Roth Incorporated (1995-1997)
  • Washington Square Securities (1997-2003)
  • Centaurus Financial (2003-Present)

Allegations

  • In November 1989, a customer alleged that they experienced trading losses due to Timothy Tremblay’s forgery of account documents. This case was settled for $30,000 in damages.
  • In October 1991, customers alleged that Timothy Tremblay made material misrepresentations. This case was settled for $13,500 in damages.
  • In June 1992, a customer alleged that Timothy Tremblay misrepresented details regarding investments in energy income partnerships. This case was settled for $82,500.
  • In September 1992, customers alleged that Timothy Tremblay committed fraud, recommended unsuitable securities, made material misrepresentations, and managed their account negligently. This case went to arbitration where the customer was awarded $168,630 in damages.
  • In September 1992, a customer alleged that Timothy Tremblay failed to follow their instructions. This case was settled for $213,800.
  • In October 1992, a customer alleged that Timothy Tremblay recommended unsuitable investments, made material misrepresentations, and churned their account. This case was settled for $85,000 in damages.
  • In November 1992, a customer alleged that Timothy Tremblay recommended unsuitable securities and made material misrepresentations. This case was settled for $83,702 in damages.
  • In July 1994, a customer alleged that Timothy Tremblay executed unauthorized trades and recommended unsuitable investments. This case was settled for $27,500 in damages.
  • In February 2013, a customer alleged that Timothy Tremblay did not invest her portfolio properly. This case was settled for $119,375 in damages.
  • In July 2015, a customer alleged that Timothy Tremblay engaged in fraud, made misleading statements, omitted material information, breached his fiduciary duty, negligently handled their account, breached contract, breached the covenant of good faith and fair dealing, and financially abused an elderly individual. This case was settled for $130,000 in damages.

The claim filed by Oakes & Fosher was filed on behalf of Tremblays’ customers against Centaurus Financial. While Tremblay’s son, Troy Tremblay, was the couple’s broker, Timothy Tremblay was heavily involved in handling and overseeing their account. The couple made it clear to the Tremblays that they wanted their principal invested very conservatively as they did not have the luxury to take substantive risks with their “nest egg.” Despite this, the Tremblays allegedly invested almost all of the couple’s $900,000 principal into private products known as non-traded real estate investment trusts, or REITs.

Non-Traded REITs

Non-traded REITs are privately traded securities that aren’t sold on any public securities exchanges. Due to their private nature, there is a distinct potential for oversight that can occur with these products that usually leads to the broker’s advantage. These are highly speculative investments that carry a great deal of risk on the part of the investor. They are also incredibly illiquid products as the stated market value does not necessarily equate to the amount you can receive when selling the product. They are also accompanied by excessively high broker commissions compounded with other upfront fees that greatly lower the investor’s principal investment. Essentially, non-traded REITs are highly unsuitable for individuals looking to invest conservatively–investors like the Tremblays’ customers mentioned above.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to representing investors that have suffered losses due to the activity of brokers like Timothy Tremblay. If you or someone that you know has lost money due to the negligence or fraud of a stockbroker, such as Timothy Tremblay, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, meaning that you don’t pay us unless we collect for you.