Donnie Eugene Ingram of Winter Haven, Florida, a stockbroker formerly registered with Centaurus Financial Inc., and Centaurus Financial are the subject of a Financial Industry Regulatory Authority (FINRA) enforcement action in which the regulator is seeking sanctions against Ingram based upon allegations that Ingram made unsuitable recommendations, and that Centaurus Financial failed to reasonably supervise Ingram’s recommendations of UITs and alternative investments. FINRA Enforcement (AWC) Case No. 2018057298701 (Sept. 27, 2022).
According to the Complaint, Ingram is accused of making unsuitable recommendations to 83 customers while he was associated with Centaurus Financial Inc. Specifically, Ingram is accused of recommending that customers of Centaurus purchase 595 standard version Unit Investment Trusts (UIT), which ultimately caused the customers to incur unnecessary initial and deferred sales charges in excess of $300,000.00. Ingram purportedly recommended the standard version of UIT despite there being equivalent fee-based UITs being available. Recommending fee-based UITs apparently would not have resulted in the customers paying unnecessary sales charges and would have had no negative effect on the customers.
Similarly, Ingram is also accused of recommending customers purchase alternative investments through Centaurus instead of Ingram Advisory, where they would have been able to avoid paying commissions on the transactions. By recommending that the purchases go through Centaurus instead of Ingram Advisory, both Ingram and Centaurus were able to share in the commissions generated from the transactions. Ingram is being accused of violating FINRA Rules 2010 and 2111(a) in this pending matter.
FINRA Public Disclosure shows that Ingram is referenced in ten (10) other customer initiated investment related disputes concerning Ingram’s conduct while associated with securities broker dealers, including Investors Capital Corp. On July 26, 2016, a customer initiated investment related FINRA securities arbitration claim involving Ingram’s conduct was settled for $200,000.00 in damages based upon allegations that Ingram made unsuitable recommendations in connection with the sale of corporate bonds, common stocks and preferred stocks real estate securities when Ingram was associated with Investors Capital Corp. FINRA Arbitration No. 16-02238.
On August 22, 2016, a customer initiated investment related FINRA securities arbitration claim involving Ingram’s conduct was settled for $115,000.00 in damages based upon allegations that Ingram made unsuitable recommendations, and overconcentrated the customer’s account in corporate bonds duringthe period Ingram was associated with Investors Capital Corp. FINRA Arbitration No. 16-01732.
Ingram is also referenced in a FINRA securities arbitration claim that was settled for $46,000.00 in damages based upon allegations that Ingram made unsuitable transactions with regard to the recommendation and sale of corporate bonds, common stock, preferred stocks, and real estate securities when Ingram was associated with Investors Capital Corp. FINRA Arbitration No. 16-02599 (Aug. 25, 2016).
On October 12, 2016, a FINRA securities arbitration claim involving Ingram’s conduct was settled for $45,000.00 in damages based upon allegations that Ingram made unsuitable transactions relating to the recommendation and sale of corporate bonds and direct investments when Ingram was associated with Investors Capital Corp. FINRA Arbitration No. 16-02304. Ingram is also referenced in a FINRA securities arbitration claim that was settled for $23,000.00 in damages based upon allegations that Ingram made unsuitable transactions in connection with the recommendation and sale of corporate bonds and real estate securities when Ingram was associated with Cetera Advisors LLC. FINRA Arbitration No. 17-00928 (Apr. 12, 2017).
