Christopher Delbert Martin, a stockbroker based in Apple Valley, California, and registered with Centaurus Financial Inc., has been suspended by Financial Industry Regulatory Authority (FINRA) for “selling away” or engaging in private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2023079660501 (January 14, 2025).
According to the AWC, Martin participated in selling $4,436,381 worth of common stock in a cannabis-related company that he co-founded. From July 2017 to October 2022, he introduced 106 investors, including 19 customers from Centaurus Financial, to the investment without notifying or obtaining written approval from the securities broker dealer. Martin also provided presentations and accepted investor subscription agreements. He falsely attested on six compliance questionnaires from 2017 to 2022 that he had not engaged in private securities transactions.
On January 14, 2025, FINRA issued a two-year suspension, effective from February 3, 2025, to February 2, 2027, and imposed a $15,000 fine. The violations pertained to FINRA Rules 3280 and 2010, which prohibit participation in private securities transactions without securities broker dealer approval.
Despite his role as an executive officer in the company, Martin was required to disclose and seek permission for his involvement in capital-raising activities. FINRA’s findings indicate that Martin knowingly circumvented compliance requirements, misleading the securities broker dealer regarding his activities. He consented to the sanctions without admitting or denying the allegations.
In addition to the regulatory action, FINRA Public Disclosure shows that a pending customer initiated investment related civil action was filed in California Superior Court, San Bernardino County (Case No. CIVSB2423598) on August 21, 2024. The claim alleged that from 2017 to 2024, Martin engaged in misrepresentations of material fact, fraud, and financial elder abuse in connection with the sale of a private placement. The customers claim that he acted outside of his broker-dealer’s oversight. Martin denies all allegations, asserting that he did not act as a financial advisor to the customers and was involved solely as an investor and officer of the separate entity. Centaurus Financial has estimated that the compensatory damages sought exceed $5,000.
Martin has been with Centaurus Financial Inc. since April 2006, first as a registered representative and later as a general securities principal.
