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Cindy Chiellini: Investor Claims Collectively Settled for Over $1 Million

Cindy Chiellini (CRD #: 1015592), a broker registered with Centaurus Financial, allegedly misrepresented unsuitable investments, according to her BrokerCheck record, accessed on July 31, 2022. If you want to learn more about Cindy Chiellini’s conduct as a broker, keep reading.

Disputes Involving Unsuitable Investments

From 2016 to 2021, Cindy Chiellini was named in more than two dozen disputes concerning the alleged recommendation or other facilitation of the purchase of unsuitable investments, and the misrepresentation of these investments to clients. These disputes were settled for approximately $1,076,750.

Two additional disputes involving the same allegations, filed on August 10, 2020, and May 23, 2022, remain pending.

A dispute filed on March 18, 2019, alleged that Cindy Chiellini executed unauthorized and unsuitable trades on July 30, 2018. This dispute was settled for $65,000.

A dispute filed on August 16, 2018, alleged that Cindy Chiellini invested clients’ accounts in investments with less liquidity than instructed, leading to the loss of principal when the investments were sold. This dispute was settled for $50,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider the information contained in an investor’s profile, including their age, tax status, and other investments.

Investors who rely on their broker for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Rule 2020 and 3260

The misrepresentation of investments violates FINRA Rule 2020, which forbids the use of deceptive, manipulative, and otherwise fraudulent tactics to influence investors’ decisions. 

FINRA Rule 3260 limits brokers’ discretionary trading in pre-approved discretionary accounts, authorized by both the client and the firm.

Disputes Alleging Negligence

Two disputes filed in 2019 named Cindy Chiellini in allegations of negligence and potential fraud during a collective period of 2012-2018. These disputes were settled for $112,500.

What is broker negligence?

Many types of broker misconduct may qualify as negligence, including unsuitable investment recommendations, unauthorized trading, and overconcentration of securities. Investors who believe their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Cindy Chiellini has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination 

Cindy Chiellini is a registered broker in nine states.

She has also worked for the following firms:

  • J.P. Turner & Company (CRD#:43177)
  • Gunnallen Financial (CRD#:17609)
  • First Allied Securities (CRD#:32444)
  • D.E. Frey & Company (CRD#:23595)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • The Robinson-Humphrey Company (CRD#:723)

Kurta Law Can Help

If you worked with Cindy Chiellini and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.