Michael Hamilton Fined by SEC for Alleged Reg-BI Violations

Michael Hamilton (CRD #: 2038138), a broker registered with Centaurus Financial, was the subject of an SEC regulatory action. This disclosure appears on his BrokerCheck record, accessed on April 11, 2025. Keep reading if you have questions about his alleged conduct.

SEC Regulatory Action

On February 7, 2025, the Securities and Exchange Commission filed a regulatory action against Michael Hamilton, Debbie Cavanaugh, Matt Hawkins, Timothy Tremblay, and Centaurus Financial, alleging violations of Regulation Best Interest.

According to the SEC, GWG Holdings allegedly described its L Bonds as high-risk and speculative. Its disclosures allegedly also described L Bonds as only suitable for investors with significant financial resources. 

Michael Hamilton 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 product’s risks, costs, and potential rewards.

The SEC alleged that Michael Hamilton failed to comply with 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 brokerage firms must also uphold certain obligations, like the Duty of Care Obligation, which involves researching the market for investments that could offer similar benefits at a lower cost before making a recommendation. 

Sanctions

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

• $12,500 fine
• $5,204.30 disgorgement
• $1,240.74 additional sanction

Background Information 

Michael Hamilton has passed the following exams: 

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

He is a registered broker in 17 states and is a registered investment adviser in ten states. 

Michael Hamilton has registered with the following firms: 

• Centaurus Financial (CRD #: 30833) 
• J.P. Turner & Company Capital Management (CRD #: 124446) 
• J.P. Turner & Company (CRD#:43177)
• GunnAllen Financial (CRD #: 17609) 
• Raymond James & Associates (CRD #: 705) 
• Prudential Securities Incorporated (CRD #: 7471) 
• Smith Barney (CRD #: 7059) 
• Lehman Brothers (CRD #: 7506) 
• Prudential Securities (CRD #: 7471) 

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.