William Charles Burks II (Bill Burks II) – Centaurus Financial Broker Complaints and FINRA Sanctions
The White Law Group is investigating customer complaints and regulatory actions involving William Charles Burks II, also known as Bill Burks II, a long-tenured broker and investment adviser with Centaurus Financial, Inc. Investors who worked with Burks through Centaurus may have been exposed to unsuitable, high-risk, and illiquid alternative investments, including non-traded REITs, business development companies (BDCs), and interval funds.
Broker Background: William Charles Burks II
- Name: William Charles Burks II (Bill Burks II)
- CRD#: 2944992
- Current Firm: Centaurus Financial, Inc. (CRD# 30833)
- Location: Flower Mound, Texas
- Experience: 28 years
- Registrations: Broker and Investment Adviser
- Disclosures: 8 total
Burks has been registered with Centaurus Financial since 2000 as a broker and since 2011 as an investment adviser, making the firm responsible for supervising his recommendations under FINRA rules.
FINRA Disciplinary Action: Unsuitable Concentration in Alternative Investments
In August 2025, FINRA announced a final regulatory action against Bill Burks II, resolved through an Acceptance, Waiver & Consent (AWC).
Key FINRA Findings
Without admitting or denying the findings, Burks consented to sanctions after FINRA found that he:
- Recommended unsuitably high concentrations of customer assets in illiquid or limited-liquidity alternative investments
- Exposed customers to a substantial risk of loss
- Recommended non-traded REITs, BDCs, and interval funds
- Made recommendations that did not align with customers’ low or moderate risk tolerances
- Submitted transaction paperwork that did not accurately reflect clients’ stated investment objectives, including capital preservation and income
FINRA Sanctions
- Fine: $10,000
- Suspension: 4 months in all capacities
- Suspension Period: September 15, 2025 – January 14, 2026
FINRA also noted that customers filed arbitration claims related to these recommendations, and two of the three affected customers reached settlements.
Customer Complaints and Arbitration Claims
Bill Burks II’s disclosure history reflects multiple customer disputes, many involving allegations of unsuitable, speculative, and illiquid investment recommendations.
Pending Customer Complaints
- November 2025 (Pending):
Customer alleges recommendation of a speculative, illiquid investment
Damages Claimed: $80,000 - August 2024 (Pending):
Allegations of unsuitable, illiquid, speculative investments and breach of fiduciary duty
Damages Claimed: $200,000
Settled Customer Disputes
- February 2024:
Allegations of unsuitable, high-risk, illiquid investments
Claimed: $1,000,000
Settlement: $287,500 - August 2023:
Allegations involving unsuitable alternative investments (2017–2019)
Claimed: $580,000
Settlement: $299,000 - May 2023:
Allegations of unsuitable, risky investments
Settlement: $225,000
Although Burks consistently denied wrongdoing in these matters, Centaurus Financial reportedly settled several claims, a critical factor when evaluating firm-level supervision and liability.
Why Alternative Investment Recommendations Raise Red Flags
FINRA has repeatedly warned that alternative investments—including non-traded REITs, BDCs, private placements, and interval funds—carry heightened risks:
- Limited or no liquidity
- Complex fee structures
- Valuation opacity
- Elevated commissions and sales incentives
- Unsuitability for conservative or income-focused investors
When these products are over-concentrated in client portfolios, particularly for retirees or moderate-risk investors, the potential for FINRA rule violations increases significantly.
Centaurus Financial’s Supervisory Responsibilities
Broker-dealers like Centaurus Financial, Inc. have an independent duty under FINRA Rules 2111 and 3110 to:
- Ensure investment recommendations are suitable
- Accurately capture customer risk tolerance and objectives
- Supervise concentrations in alternative investments
- Detect red flags involving illiquidity and speculative risk
When a registered representative accumulates multiple customer complaints and a FINRA suspension, questions naturally arise regarding firm-level supervision, compliance systems, and approval of alternative investment sales.
Can Investors Recover Losses Through FINRA Arbitration?
Yes. Investors who suffered losses due to unsuitable recommendations, excessive concentration in illiquid products, or supervisory failures may be able to pursue compensation through FINRA Dispute Resolution.
FINRA arbitration can seek recovery for:
- Investment losses
- Out-of-pocket damages
- Interest and costs
- In some cases, attorneys’ fees
Free Consultation with a Securities Fraud Attorney
If you invested with William Charles Burks II (Bill Burks II) at Centaurus Financial and experienced losses in non-traded REITs, BDCs, interval funds, or other alternative investments, you may have legal options.
Call The White Law Group at 888-637-5510
Free, confidential consultation
National FINRA arbitration and securities fraud law firm
