Centara Capital Securities, Inc., a San Diego, California based firm, submitted a Letter of Acceptance, Waiver and Consent in which the firm consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that it distributed various pieces of sales literature concerning a private placement fund called The EquityKey S&P/Case-Shiller Enhanced Growth Fund, which violated the content standards set forth in FINRA advertising rules. FINRA stated that each of the sales literature communications failed to balance the described benefits of a fund with the specific risks associated with the fund, including the potential loss of capital; limited liquidity, including the lack of a secondary market; the restricted redemption program; lack of initial dividends; and the small and non-diverse nature of the portfolio. FINRA also stated that each of the sales literature communications contained various false, exaggerated, unwarranted and/or misleading statements. FINRA further stated that the PowerPoint presentation and the fund snapshot included statements that constituted impermissible predictions, projections, claims, opinions and/or forecasts of future performance. Centara Capital was censured and fined $20,000.
FINRA requires broker-dealer advertisements and other communications with the public to be fair, balanced and not misleading. If advertisements and other communications are not fair and balanced, and are misleading, broker-dealers may be liable to investors for damages flowing from their misrepresentations. As a result, investors who have suffered losses in The EquityKey S&P/Case-Shiller Enhanced Growth Fund or any other misrepresented investment can bring forth claims against Centara Capital Securities to recover damages. Have you suffered losses in your Centara Capital Securities, Inc. account due to misrepresented investments? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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