Ricky Alan Mantei Investigation
Updated December 2023
Former JP Turner & Centaurus Customers Have Sued for Damages-Sold Variable Interest Rate Structured ProductsLexington, SC
The FINRA records of Ricky Alan Mantei, currently employed by Centaurus Financial and formerly a broker with now defunct JP Turner, disclose 3 regulatory events, 38 prior customer disputes and 3 pending customer disputes.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 2/2023 the Securities Commissioner of South Carolina , the South Carolina Department of Insurance and the US Securities & Exchange Commission issued sanctions, including a fine of more than $200,000, a suspension and a cease and desist for various regulatory violations. South Carolina regulators alleged that Mantei recommended Variable Interest Rate Structured Products (VRSPs) and corporate bonds to retail customers for which an appropriate overall evaluation of the financial profile was not conducted. Mantei in his capacity as branch manager allegedly failed to reasonably supervise the brokers which he was charged with overseeing.
In 2/2023 The United States Securities and Exchange Commission (SEC)filed case #3-21295 and sanctioned Mantei as a result that he made these recommendations even though they knew, or reasonably should have known, among other factors, that the specified customers to whom these VRSPs were recommended: were at or approaching retirement age; had an annual income of less than $100,000; in most cases, had a net worth of less than $500,000; had a low or moderate risk tolerance; had investment objectives that included, or were limited to, “income” and sought periodic interest payments; had moderate or high liquidity needs; had an investment time horizon of less than fifteen years; and were unwilling to risk losing all or some of their principal invested in the VRSPs.
The South Carolina Department of Insurance fined Mantei for failing to timely disclose a misdemeanor plea deal associated with a failure to pay, file or maintain payment of property tax.
Mantei discloses that 38 cases brought by customers of his prior employers JP Turner aka Cetera Financial Group , Summit Brokerage Services and his current employer Centarus Financial were settled by cash payments totaling more than $1.1 million. Wrongdoing alleged by these customers includes:
- unsuitable investments in alternative investments
- breach of fiduciary duty
- over concentration of unsuitable investments
There are currently two customer cases currently pending seeking damages for mismanagement including a FINRA arbitration filed in 10/2023 which seeks damages of $499,000 and alleges that Ricky Mantei recommended unsuitable, high risk, speculative and illiquid investments.
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk. For more investigations involving Alternative Investments, see this.
Did you lose money on Variable Interest Rate Structured Products?
Variable Interest Rate Structured Products (“VRSPs”) are complex, structured securities, typically issued by large well-known financial institutions, that offer guaranteed periodic fixed-interest rate payments, typically for one to three years. They may not be suitable for many investors, especially retirees and those seeking conservative investments.
See this for more information on REITs and Other Alternative Investments
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090) Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer. FINRA Rule 2111- suitability
If you have losses in an account handled by Ricky Mantei call to learn how you may be entitled to collect damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Other investigations of Centaurus Financial brokers
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