Centaurus Financial Fined Over $1 Million by SEC for Unsuitable Structured Products

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Updated on: February 10, 2023

Red Flags at Centaurus Financial’s Lexington, SC Branch

National investment fraud lawyers KlaymanToskes is investigating Centaurus Financial’s Lexington, SC branch after SEC charges were filed against the firm, its branch manager Ricky A. Mantei (CRD# 1098981), and broker Atul Makharia (CRD# 5070762) in connection with selling unsuitable variable interest rate structured products.

According to the SEC Order, between June 2016 and July 2019, at least eight Centaurus Financial representatives at the firm’s Lexington, SC branch (located at 4580 Sunset Blvd) recommended unsuitable variable interest rate structured products to at least 94 investors. The SEC’s order states that the products sold, with maturity periods of 15 years or more, were unsuitable due to being structured in a way that caused investors to lose some or all of their principal at maturity if their securities’ indexes declined by more than a certain percentage.

If you suffered significant losses with Ricky A. Mantei and/or Atul Makharia at Centaurus Financial’s Lexington, SC branch, contact securities attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your potential case.

SEC Fines Centaurus Financial Representatives Over $1 Million

The SEC’s Order alleges Centaurus failed to implement customer-specific suitability procedures and violated the broker-dealer books and records provisions of the federal securities laws. Centaurus Financial consented to a censure and agreed to pay a civil penalty of $750,000, disgorgement of $4,876 plus prejudgment interest of $623, and to retain an independent compliance consultant.

The branch’s manager, Ricky A. Mantei (CRD# 1098981) agreed to pay disgorgement of $92,650 plus prejudgment interest of $11,842 and a civil penalty of $206,000. Makharia is further limited from acting in a supervisory capacity for six months.

Broker Atul Makharia (CRD# 5070762) made at least 50 unsuitable recommendations of variable interest rate structured products to a total of 30 customers. Makharia agreed to pay a civil penalty of $35,000 and will remain suspended for six months.

How Can I Recover My Losses?

KlaymanToskes encourages investors who did business with Atul Makharia and/or Ricky A. Mantei at the Lexington, SC branch of Centaurus Financial to review their accounts for signs of broker misconduct and/or investment losses.

Investors that suffered significant losses should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options at no cost.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.


KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.