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Investors Allege David White Misrepresented Investment

David White (CRD #: 1382131), a broker formerly registered with Centaurus Financial, is the subject of a pending dispute, according to his BrokerCheck record, accessed on February 28, 2023. If you want to know more about his alleged conduct as a broker, read on.

Investor Disputes

On December 22, 2022, multiple investors filed a dispute alleging that David White misrepresented an unsuitable investment from March through October 2019. The clients seek $200,000 in damages in this pending dispute.

In a dispute filed on June 12, 2017, an investor alleged that David White sold them an unsuitable investment and “rushed” them into settling a prior complaint that the client did not believe was in their best interest. This dispute was settled for an undisclosed amount.

On November 17, 2015, several investors associated with a trust filed a dispute alleging that David White misrepresented seven investments, including non-traded real estate investment trusts (REITs), oil and gas programs, and limited partnerships. The clients’ trust allegedly invested $2 million into these investments.

The investors further alleged that David White purposefully put them in investments that charged high fees. They sought $1.5 million in damages and the dispute was settled for an undisclosed amount.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent tactics to influence the purchase and sale of securities. This includes the misrepresentation or omission of information, such as an investment’s fees, risks, or limitations.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information described in an investor’s profile, such as their tax status, risk tolerance, and age.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

What is a real estate investment trust?

A real estate investment trust (REIT) allows investors to pool their funds in a portfolio of income-generating real estate without taking on any responsibility for the properties. However, the illiquidity associated with REITs can make them unsuitable for many investors.

Background Information

David White has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 22 – Direct Participation Programs Representative Examination

He has also worked for the following firms:

  • Centaurus Financial (CRD#:30833)
  • Leonard & Company (CRD#:36527)
  • Vestax Securities Corporation (CRD#:10332)
  • Walnut Street Securities (CRD#:15840)
  • Hall Securities Corporation (CRD#:13013)

Kurta Law Can Help

If you worked with David White 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.