Cheryl Kitashima: Bond Complaint Against Centaurus Advisor

Seattle financial advisor Cheryl Kitashima (CRD# 729389) allegedly recommended an unsuitable investment, according to a recent investor complaint. Financial Industry Regulatory Authority records show that she is a broker and an investment advisor with Centaurus Financial, doing business as Kitashima Wealth Advisors.

Ms. Kitashima’s BrokerCheck report discloses multiple investor complaints. The most recent, filed in November 2023, alleges that as a representative of Centaurus Financial, she breached her fiduciary duty and “recommended an unsuitable, high-risk, speculative, illiquid investment” in a corporate bond product. The pending complaint alleges damages of $50,000.

In a statement included with the complaint’s disclosure, Ms. Kitashima pushed back against the allegations. “I vehemently deny any wrongdoing and assert that the allegations are completely without merit,” she wrote. “The investments about which the customer complained were suitable and were recommended based on the customer’s objectives, goals and financial circumstances and were offered only after his review of all material documentation related to the investment.” She added that the customer “confirmed in writing” his understanding of the investment’s risks.

An earlier investor complaint, filed in 2015, alleged that as a Centaurus Financial representative, she failed to supervise, recommended unsuitable investments, committed fraud, breached her fiduciary duty, and acted negligent. In 2016 the complaint reached a settlement of $22,500.

A third investor complaint, filed in 2014, alleged that she misrepresented material facts, recommended unsuitable investments in oil and gas and variable annuity products, breached her fiduciary duty, and acted negligently. In 2016 the complaint reached a settlement of $87,500.

A fourth investor complaint, filed in 2014, alleged that she committed fraud, breached her fiduciary duty, and recommended unsuitable investments in a real estate debenture and a variable annuity. In 2016 the complaint reached a settlement of $30,000.

A fifth investor complaint, filed in 2014, alleged negligence, breach of fiduciary duty, fraud, misrepresentation, and unsuitable recommendations of variable annuity investments and other products. In 2015 the complaint reached a settlement of $160,000.

According to the Financial Industry Regulatory Authority, Cheryl Kitashima holds 42 years of securities industry experience. Based in Seattle, Washington, she has been a broker and an investment advisor with Centaurus Financial since 2005, doing business as Kitashima Wealth Advisors. Her registration history includes KMS Financial Services, Pacific Harbor Securities, Royal Alliance Associates, Integrated Resources Equity Corporation, FSC Securities, and Waddell & Reed. Her credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the Direct Participation Programs Representative Examination, or Series 22; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. She is licensed in Alaska, California, Colorado, Montana, Oregon, Utah, Virginia, and Washington. (Information current as of December 26, 2023.)

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