Matt Hawkins Censured and Fined by SEC for Alleged Reg-BI Violations

Matt Hawkins (CRD #: 5731136), a broker registered with Centaurus Financial, has been fined by the SEC. This disclosure appears on his BrokerCheck record, accessed on April 10, 2025. Investors may have engaged his services through Cola Wealth Advisors. Read on to learn more about his alleged conduct as a broker.

SEC Regulatory Action

On February 7, 2025, the Securities and Exchange Commission filed a regulatory action against Matt Hawkins, Debbie Cavanaugh, Michael Hamilton, Timothy Tremblay, and Centaurus Financial, alleging violations of Regulation Best Interest with regard to recommendations of L Bonds offered by GWG Holdings.

According to the SEC, GWG Holdings allegedly described its L Bonds as involving a high level of risk, limited liquidity, and only suitable for investors with significant financial resources.

Matt Hawkins and other Centaurus Financial brokers allegedly recommended L Bonds to 18 investors without a reasonable basis to believe that they were in the investors’ best interest given the information in their profiles and risks, costs, and potential benefits of L Bonds.

The SEC alleged that Matt Hawkins violated the General Obligation and Care Obligation of Regulation Best Interest.

What is Regulation Best Interest? 

Regulation Best Interest (Reg BI) expanded on the requirements of FINRA Rule 2111, which defines the criteria for suitable investment recommendations. Reg BI requires firms to uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation. The Duty of Care Obligation involves researching the market for investments that could offer similar benefits at a lower cost before making a recommendation. 

Sanctions

The SEC censured Matt Hawkins and ordered him to cease and desist from future violations of Regulation Best Interest. The SEC also ordered him to pay the following sanctions:

• $12,500 fine
• $1,122.49 disgorgement
• $259.28 additional sanction

Investor Disputes 

On September 9, 2019, multiple investors alleged that Matt Hawkins misrepresented unsuitable investments. The clients sought $100,000 in damages and received a settlement of $55,000.

Two disputes, filed on December 13, 2018, and June 20, 2019, alleged that Matt Hawkins made unsuitable investment recommendations. These disputes were settled for a total of $142,500.

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. 

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020 – Misrepresentations or Omissions

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent tactics to influence the purchase and sale of securities. Misrepresenting or omitting facts about an investment’s features, risks, fees, or potential returns violates this rule.

Background Information 

Matt Hawkins has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He is a registered broker in nine states and a registered investment adviser in North Carolina and South Carolina. 

Matt Hawkins was previously registered with J.P. Turner & Company (CRD #: 43177).

Kurta Law Can Help

If you worked with Michael Hamilton and 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.