Investors Seek Over $1.5 Million in Disputes with Timothy Tremblay

Timothy Tremblay (CRD #: 1201542), a broker registered with Centaurus Financial, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on April 9, 2025. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

Three pending disputes filed from 2023-2025 allege that Timothy Tremblay made unsuitable recommendations of high-risk and illiquid investments. Investors seek a collective $1.394 million in damages.

On February 21, 2025, multiple investors filed a dispute alleging that Timothy Tremblay recommended unsuitable investments that were high-risk, speculative, and had limited liquidity. He allegedly also misrepresented these investments. The clients seek $100,000 in this pending dispute.

In a dispute filed on August 15, 2024, an investor alleged that Timothy Tremblay made a poor investment recommendation resulting in significant losses. They seek $500,000 in damages.

On September 30, 2022, an investor alleged that Timothy Tremblay recommended an unsuitable, high-risk, and illiquid investment. This dispute was settled for $65,000.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

• Investments can be unsuitable because they are high-risk and more likely to cause losses for the client.
• Investments may also be unsuitable because they are illiquid. Certain securities are meant to be held for an extended time and can penalize investors with high fees if they try to cash out too soon.
• Trading activity can be quantitatively unsuitable, which means that the broker executed an excessive number of trades.
• Overall investment strategies can also be unsuitable—overconcentration in a singular stock or sector is a common example.

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

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent tactics to influence the purchase and sale of securities. This includes the misrepresentation or omission of information relating to investments, such as their costs, fees, risks, or potential returns.

SEC Regulatory Action

On February 7, 2025, the Securities and Exchange Commission filed cease-and-desist proceedings against Timothy Tremblay, Debbie Cavanaugh, Michael Hamilton, Matt Hawkins, and Centaurus Financial, alleging that they failed to comply with Regulation Best Interest in relation to recommendations of GWG Holdings’ L Bonds.

The SEC alleged that GWG Holdings described L Bonds as speculative, high-risk, and only suitable for investors with significant financial resources. Timothy Tremblay and other brokers of Centaurus Financial allegedly recommended L Bonds to 18 investors without a reasonable basis to believe these recommendations were in their best interest given the L Bonds’ potential costs, risks, and returns.

The SEC alleged that Timothy Tremblay failed to comply with Regulation Best Interest’s Care Obligation and General Obligation.

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 Timothy Tremblay and ordered him to cease and desist from future violations of Regulation Best Interest.

The SEC also ordered Timothy Tremblay to pay the following:

• $12,500 fine
• $6,060.50 disgorgement
• $1,454.99 additional penalty

Background Information

Timothy Tremblay 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
• Series 24 – General Securities Principal Examination

Timothy Tremblay is a registered broker in 16 states and the District of Columbia. He is also a registered investment adviser in California, New Mexico, and Pennsylvania.

He has also worked for the following firms:

• Washington Square Securities (CRD#:2882)
• Cruttenden Roth (CRD#:15407)
• Smith Barney (CRD#:7059)
• Prudential Securities (CRD#:7471)
• PaineWebber (CRD#:8174)

Kurta Law Can Help

If you worked with Timothy Tremblay 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 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.