Swan Financial’s Bill Dobbs Involved in More Customer Disputes
Bills Dobbs (CRD# 1064156), a broker registered with Centaurus Financial and doing business under the brand Swan Financial Services, allegedly recommended an unsuitable investment. This allegation can be found in his BrokerCheck report, a record published by the Financial Industry Regulatory Authority (FINRA) and accessed on July 5, 2023. As that record shows, he works out of his firm’s branch office in Clinton, Tennessee.
Corporate Bond Disputes
Two investors have lodged disputes involving Mr. Dobbs in 2023, according to his BrokerCheck record. Both disputes stem from investments in corporate bond products. One alleges that he recommended an unsuitable product, the other that he “recommended a high-risk, speculative illiquid investment.” The disputes, which remain pending, seek at least $50,000 in damages.
Bill Dobbs Denies Allegations
Mr. Dobbs issued statements denying the allegations made in each of the above-described disputes. Each statement describes the investments at issue as suitable for the customers, while describing his recommendations as “based on the customer’s objectives, goals and financial circumstances.” The statements argue that the claimants “fully understood the characteristics and risks” of the products, and further that Mr. Dobbs “put the customer’s interest first.”
Past Disputes Settled for 6 Figures
Three disputes involving Mr. Dobbs were settled by his current or past member firms, according to his BrokerCheck record. These disputes, filed between 2002 and 2021, concerned allegations that he recommended high-risk investments, failed to establish a stop-loss on a customer’s accounts, breached his fiduciary duty to place the client’s interests ahead of his own, employed unfair business practices, and made negligent misrepresentations concerning the sale of a variable universal life insurance contract. These disputes were settled for a total of $179,900.
FINRA Establishes Suitability Requirements
Under FINRA Rule 2111, brokers like Bill Dobbs “must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer.” To determine a recommendation’s suitability, they must conduct reasonable diligence into the investor’s profile, a set of information that includes their age, income, net worth, tax status, risk tolerance, investment horizon, and other factors.
Can Brokers Provide Misleading Information?
Under Rule 2020, brokers are prohibited from using “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” when they effect securities transactions. In other words, they may not misrepresent material information regarding the transactions they recommend.
FINRA: Dobbs Based in Clinton, Tennessee
Bill Dobbs launched his career as a broker in 1982, when he started working at Pruco Securities Corporation. Over the years since, he’s worked at firms likeSun Investment Services, John Hancock Distributors, and MetLife Securities, according to his BrokerCheck record. He has been a broker with Centaurus Financial since 2009, working out of the firm’s office in Clinton, Tennessee. With 39 years of experience as a broker, he has passed two state securities law exams and three general industry/products exams.
MDF Law Advocates for Investors
Current or former clients of Bill Dobbs may be able to recoup investment losses through the FINRA arbitration process. Call MDF Law if any of the following apply to you:
- You lost money on investments that exceeded your risk tolerance;
- You were not made fully aware of the risks associated with investments in your portfolio, such as high fees or the potential for principal loss;
- Your accounts were poorly diversified.
MDF Law’s team of experienced investment fraud attorneys has secured tens of millions in recoveries for their clients. We take cases on a contingency basis — you only pay a fee if you win — and offer consultations free of charge. Call 800-767-8040 to speak with a lawyer today.