Broker Bryon Martinsen Allegedly Sold Securities Away from His Firm
The White Law Group is investigating potential securities claims involving former Centaurus Financial broker Bryon C. Martinsen (CRD #1621649).
FINRA has now permanently barred Martinsen from the securities industry in all capacities, effective May 15, 2026. This came after he refused to cooperate with a FINRA investigation — a serious escalation from his earlier suspension. If you invested with Martinsen and suffered losses, you may have legal options.
On August 19, 2022, the Financial Industry Regulatory Authority (FINRA) suspended Martinsen for 15 months and imposed a fine after findings that he engaged in private securities transactions without notifying his firm. According to FINRA, Martinsen allegedly facilitated the sale of approximately $1.1 million in alternative investments without providing prior written notice to Centaurus Financial. He reportedly introduced customers who wanted to sell illiquid investments to other customers interested in buying them, or in some cases, he purchased the investments himself.
FINRA’s Permanent Bar of Bryon Martinsen (2026)
Without admitting or denying the findings, Martinsen consented to a permanent bar from the securities industry in all capacities, effective May 15, 2026. FINRA’s findings state that he refused to provide documents and information, and declined to appear for on-the-record testimony, during a FINRA review of a Form U5 amendment filed by his former member firm. That amendment disclosed that Martinsen may have engaged in conduct actionable under an applicable statute, rule, or regulation. The bar is indefinite in duration.
2022 FINRA Findings Against Bryon Martinsen
- Martinsen allegedly failed to disclose private securities transactions in writing to his firm.
- He falsely denied participation in such transactions on three compliance questionnaires.
- He reportedly made at least 150 payments, totaling $400,000, to compensate customers for prior investment losses — without disclosing these payments to his firm.
These actions violated FINRA rules regarding private securities transactions and outside business activities.
Bryon Martinsen – History of Misconduct
According to his FINRA BrokerCheck report:
- Martinsen has 11 customer complaints alleging unsuitable, high-risk, and illiquid investment recommendations.
- He was affiliated with Centaurus Financial (CRD#: 30833) in Kings Park, NY since 1999.
- He was previously registered with AXA Advisors, where he was reportedly terminated for involvement in prohibited outside business activities.
What Is “Selling Away”?
“Selling away” occurs when a broker conducts securities business outside the scope of their firm without authorization. While this practice is prohibited, brokerage firms may still be held liable for failure to supervise if their representative engages in selling away and clients suffer investment losses.
Filing a Complaint Against Your Brokerage Firm
When brokers engage in misconduct — such as unauthorized transactions, unsuitable recommendations, or selling away — their firms may be liable for investor losses. Brokerage firms that fail to properly supervise their employees can be held responsible through a FINRA arbitration claim.
If you invested with Bryon Martinsen or Centaurus Financial and suffered losses, you may be able to recover damages through a FINRA arbitration case.
Free Consultation with Securities Fraud Attorneys
If you are concerned about investment losses involving Bryon Martinsen or Centaurus Financial, The White Law Group may be able to help.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. Our attorneys have decades of experience representing investors in FINRA arbitration and securities litigation.
Call (888) 637-5510 for a free consultation with a securities attorney, or contact us online here.
FAQs About Bryon Martinsen Investor Lawsuits
1. Why was Bryon Martinsen permanently barred by FINRA?
FINRA permanently barred Martinsen from the securities industry in all capacities, effective May 15, 2026. The bar resulted from his refusal to provide documents, information, or testimony during a FINRA investigation related to a Form U5 amendment filed by his former firm, which disclosed potential regulatory violations.
2. What were the original FINRA allegations against Bryon Martinsen?
In 2022, FINRA suspended Martinsen for 15 months and fined him for engaging in private securities transactions (“selling away”) without notifying his firm, falsely denying involvement in those transactions on compliance questionnaires, and making at least $400,000 in undisclosed payments to customers to cover prior investment losses.
3. Can investors recover losses from Centaurus Financial?
Potentially, yes. Even if Martinsen acted without authorization, Centaurus Financial may be held liable for failing to properly supervise him. Investors may be able to pursue recovery of losses through a FINRA arbitration claim. Contact The White Law Group at (888) 637-5510 for a free consultation.
