Bryon Martinsen, Centaurus, Suspended after Allegations

Broker Bryon Martinsen Allegedly Sold Securities Away from his Firm

The White Law Group is investigating potential securities claims involving Bryon Martinsen and Centaurus Financial.

On August 19, 2022, the Financial Industry Regulatory Authority (FINRA) reportedly suspended and fined broker Bryon Martinsen (CRD #1621649) for 15 months.

Martinsen reportedly agreed to FINRA’s sanctions and the findings that he participated in private securities transactions by facilitating the sale of approximately $1.1 million in alternative investments without providing prior written notice to his member firm. According to the findings, Martinsen was allegedly involved in these transactions by either introducing firm customers looking to sell illiquid alternative investments to other customers interested in buying them, or by purchasing the alternative investments himself from his customers.

He also purportedly failed to notify the firm in writing about these transactions or his role in them.

Additionally, Martinsen allegedly falsely stated on three firm compliance questionnaires that he had not participated in private securities transactions. The findings further revealed that Martinsen reportedly made at least 150 payments, totaling approximately $400,000, to compensate certain customers for losses related to investments he had previously recommended.

These alleged payments from Martinsen’s personal and business accounts, were allegedly not reported to his firm, or approved. Martinsen also purportedly falsely denied on three firm compliance questionnaires that he had made such payments to customers related to their investment losses.

Bryon Martinsen – History of Misconduct

According to his FINRA Broker report, Martinsen has reportedly been affiliated with Centaurus Financial  (CRD#:30833) in Kings Park, NY since 1999. He was previously registered with AXA Advisor, but was reportedly dismissed for allegations of his involvement in “outside business activities which he had previously been advised to cease and desist.”

Bryon Martinsen reportedly has 11 customer complaints on his broker record. Allegations include over-concentration, and unsuitable, high-risk, illiquid investments, among others.   

“Selling Away”  

When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to push.  

If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.  

Filing a Complaint against your Brokerage Firm      

When brokers abuse client accounts or conduct transactions that violate securities laws, such as making unauthorized trades or making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.    

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.      

Free Consultation

If you are concerned about investment losses with Bryon Martinsen and Centaurus, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.