Debbie Cavanaugh Fined by SEC

Debbie Cavanaugh (CRD #: 1268420), a broker registered with Centaurus Financial, allegedly failed to comply with Regulation Best Interest, according to her BrokerCheck record, accessed on April 1, 2025. Investors may have also engaged her services through Big Sky Advisors. Read on to learn more about her alleged conduct as a broker.

SEC Regulatory Action

On February 7, 2025, the Securities and Exchange Commission filed cease-and-desist proceedings against Debbie Cavanaugh, Michael Hamilton, Dana Hawkins, Timothy Tremblay, and Centaurus Financial alleging violation of Regulation Best Interest with regard to recommendations of L Bonds offered by GWG Holdings.

The SEC alleged that GWG Holdings described its L Bonds as high-risk, potentially speculative, and only suitable for investors with significant financial resources. GWG Holdings allegedly also stated in its disclosures that it may use portions of L Bond proceeds to repay existing bond holders.

Debbie Cavanaugh and other representatives of Centaurus Financial allegedly recommended L Bonds to 18 investors without a reasonable basis to believe their recommendations were in those clients’ best interest given the information in their profiles.

The SEC alleged that Debbie Cavanaugh did not comply with the General Obligation and Care Obligation of Regulation Best Interest.

Regulation Best Interest

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.

Sanctions

The SEC censured Debbie Cavanaugh and ordered her to cease and desist from future violations of Regulation Best Interest. The SEC also imposed the following sanctions:

• $12,500 fine
• Disgorgement of $4,883.56
• $1,196.87 additional sanction

Investor Dispute

On March 2, 2023, an investor alleged that Debbie Cavanaugh recommended an unsuitable investment. The client seeks $50,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles describe an investor’s tax status, risk tolerance, age, financial goals, and other characteristics.

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

Background Information

Debbie Cavanaugh has passed the following exams:

• General Securities Principal Examination – Series 24
• Financial and Operations Principal Examination – Series 27
• Investment Company Products/Variable Contracts Principal Examination – Series 26
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

Debbie Cavanaugh is a registered broker in ten states and a registered investment adviser in seven states.

She has also worked for the following firms:

• Independent Financial Group (CRD#:7717)
• Securities America (CRD#:10205)
• Mariner Financial Services (CRD#:8292)
• Apogee Financial Group (CRD#:30631)
• Main Street Management Company (CRD#:547)
• GAF Financial and Insurance Services (CRD#:14123)
• PAMCO Securities and Insurance Services (CRD#:11028)
• INA Security Corporation (CRD#:422)
• American Express Financial Advisors (CRD#:6363)
• IDS Financial Services (CRD#:6320)

Kurta Law Can Help

If you worked with Debbie Cavanaugh and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 that 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.