Michael Todd: FINRA Suspends Former Todd Financial Services Advisor

Records filed with a US bankruptcy court disclose that at least one former client of ex-Centaurus Financial advisor Michael Todd (CRD# 1830390) is listed as a creditor for investments in GWG Holdings L bonds and/or preferred stock. The records, filed in Texas, describe investments exceeding $100,000. Financial Industry Regulatory Authority records show that Mr. Todd is not currently registered as a broker or as an investment advisor, having been suspended by FINRA in 2023. He was most recently registered in Crystal River, Florida, and did business as Todd Financial Services.
Mr. Todd’s BrokerCheck report discloses his recent FINRA suspension. Filed in April 2023, the disclosure states that FINRA suspended him in connection with allegations he “failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.” He was suspended from registered with any FINRA member in any capacity until the required payment is made or discharged.

Several other disclosures on Mr. Todd’s BrokerCheck report describe investor complaints against him. The most recent, filed in March 2023, alleges that as a representative of Centaurus Financial, he “incorrectly exercised trading discretion and recommended illiquid investments.” The pending complaint alleges damages of $130,000.

A second investor complaint, filed in 2022, alleged that as a representative of CentaurusFinancial, he engaged in outside business activities, sold investments away from the firm, recommended unsuitable products, was negligent in his management of the customer’s account, provided “bogus statement summaries,” converted funds, sold unregistered and non-exempt securities, violated state securities law and FINRA rules, and violated “statutes and industry rules related to senior investors, elderly persons, and disabled adults.” The complaint evolved into an arbitration proceeding before a FINRA panel, which issued a award to the customer of $60,000.

An earlier investor complaint, filed in December 2022, alleges that as a representative of Investors Capital Corp. and Centaurus Financial, he made misrepresentations regarding “illiquid, high risk and unsuitable investments,” and further that he “stole funds that were supposed to have been invested in safe, liquid fixed income securities.” The pending complaint alleges damages of $16,500.

Another disclosure on Mr. Todd’s BrokerCheck report describes his 2022 termination from Centaurus Financial. According to the disclosure, the firm fired him during an ongoing investigation into whether he “violated Firm policy and industry rules with respect to an allegation of selling away and the receipt of customer funds.”

According to the Financial Industry Regulatory Authority, Michael Todd holds 33 years of securities industry experience and is currently suspended from acting as a broker. He was most recently registered with Centaurus Financial in Crystal River, Florida from 2016 until 2022, doing business as Todd Financial Services. (Information current as of June 1, 2023.)

Carlson Law has represented at least nine investors in claims against their financial advisors for investments in GWG Holdings Inc. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.