Centaurus Financial, Inc.

Allegations: FAILURE TO: ADEQUATELY SAFEGUARD CERTAIN CUSTOMER INFORMATION ON A COMPUTER FAX SERVER; ADEQUATELY RESPOND TO INFORMATIONTHAT UNAUTHORIZED USERS HAD ACCESSED THE SYSTEM; ADEQUATELY INVESTIGATE THE SCOPE OF THE UNAUTHORIZED ACCESS. SENT INACCURATE NOTIFICATIONS OF THE ACCESS TO AFFECTED CUSTOMERS AND REPRESENTATIVES. THUS, FAILURE TO COMPLY WITH REG S-P AND FINRA RULES 2010,2211,2110 AND 3010. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM WAS FINED $175,000.00, CENSURED AND REQUIRED TO EFFECT THE UNDERTAKINGS DESCRIBED IN 12B ABOVE. Summary: IN ADDITION TO THE ITEMS DESCRIBED INTHE CORRECTIVE ACTION STATEMENT SUBMITTED BY CENTAURUS WITH THE AWC, CENTAURUS HAS IMPLEMENTED THE CORRECTIVE ACTIONS INCLUDED IN THE SANCTIONS DESCRIBED ABOVE.

Allegations: SEC RULE 17A-4(B)(4), FINRA RULE 2010, NASD RULES 2210, 2211, 3010, 3010(A) AND (D)(3), 3110(A): FIVE OF THE FIRM'S REGISTERED REPRESENTATIVES (WHOLESALE REPRESENTATIVES) FUNCTIONED AS WHOLESALERS FOR AN UNAFFILIATED INVESTMENT MANAGEMENT FIRM. ALTHOUGH THE FIRM CONTRACTED TO PROVIDE EXCLUSIVE AUTHORITY AND CONTROL OVER THE DIRECTION AND SUPERVISION OF THE REPRESENTATIVES IN CONNECTION WITH WHOLESALING FIVE OF THE INVESTMENT MANAGEMENT FIRM'S FUND PRIVATE PLACEMENTS, THE FIRM'S WRITTEN SUPERVISORY PROCEDURES (WSPS) DID NOT ADDRESS THE SUPERVISION OF WHOLESALING ACTIVITIES AND THE FIRM DID NOT SUPERVISE THE WHOLESALING ACTIVITIES OF THE WHOLESALE REPRESENTATIVES. THE WHOLESALE REPRESENTATIVES DID NOT USE THEIR FIRM'S EMAILS FOR THEIR WHOLESALING ACTIVITIES AND INSTEAD TYPICALLY USED THE INVESTMENT MANAGEMENT FIRM'S EMAIL DOMAIN TO SEND COMMUNICATIONS RELATED TO WHOLESALING THE FUNDS. HOWEVER, THE FIRM DID NOT REVIEW OR RETAIN THOSE EMAILS. THE WHOLESALE REPRESENTATIVES DISTRIBUTED COMMUNICATIONS RELATED TO THE PRIVATE PLACEMENTS AND THE INVESTMENT MANAGEMENT FIRM (INCLUDING BROKER-USE ONLY MATERIALS) TO OTHER FINRA MEMBER FIRMS. SEVERAL OF THE COMMUNICATIONS FAILED ADEQUATELY TO DISCLOSE INVESTING RISKS AND WERE MISLEADING, WHILE MANY ALSO MADE UNWARRANTED PERFORMANCE CLAIMS AND HAD OTHER SALES MATERIAL CONTENT DEFICIENCIES. THE FIRM OFFERS THE FOLLOWING TO FURTHER CLARIFY THE FACTS AND CIRCUMSTANCES WITH RESPECT TO THIS MATTER. THE WHOLESALING ACTIVITY IN QUESTION TOOK PLACE OVER A SHORT PERIOD OF TIME, SPECIFICALLY FROM FEBRUARY 2009 TO JANUARY 2010. IT INVOLVED FIVE (5) OF THE FIRM'S APPROXIMATELY SIX HUNDRED FIFTY (650) REGISTERED REPRESENTATIVES, EACH OF WHOM WERE REGISTERED AT THE FIRM AT DIFFERENT TIMES, WITH NO MORE THAN 3 REGISTERED AT ANY ONE TIME. IN THEIR CAPACITY AS WHOLESALERS FOR THIS UNAFFILIATED INVESTMENT FIRM, THESE REPRESENTATIVES DISTRIBUTED COMMUNICATIONS RELATED TO THE PRIVATE PLACEMENTS AND THE INVESTMENT FIRM (INCLUDING BROKER-USE ONLY MATERIALS) TO OTHER FINRA MEMBER FIRMS. THE NUMBER AND SPECIFIC COMMUNICATIONS DISTRIBUTED, IF ANY, IS UNKNOWN. FURTHERMORE, THERE WAS NO INDICATION THAT ANY OF THESE WRITTEN MATERIALS REACHED ANY MEMBER OF THE INVESTING PUBLIC. FINALLY, IT SHOULD BE NOTED THAT THESE OTHER FINRA MEMBER FIRMS HAD AN OBLIGATION TO REVIEW AND APPROVE SUCH COMMUNICATION, AS WAS PRESCRIBED/REQUIRED BY FINRA AND/OR ANY OTHER REGULATORY AGENCIES PRIOR TO DISTRIBUTION. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS. IN SO DOING, THE FIRM IS CENSURED AND FINED $25,000. Summary: REFER TO ITEM 7 ABOVE.

Allegations: DURING TEH REVIEW PERIOD, THE FIRM DID NOT REPORT THE CORRECT TIME OF TRADE TO THE REAL-TIME-TRANSACTION REPORTING SYSTEM (RTRS) FOR CERTAIN MUNICIPAL SECURITIES TRANSACTION AND ALSO DID NOT REPORT CERTAIN TRANSACTIONS TO THE RTRS WITHIN 15 MINUTES OF THE TIME OF TRADE AS REQUIRED BY MSRB RULE G-14. AS SUCH, THE FIRM'S SUPERVISORY PROCEDURES WERE DEEMED NOT TO PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH MSRB RULES CONCERNING REPORTING MUNICIPAL SECURITIES TRANSACTIONS. Status: Final Sanction Detail: CENSURE AND FINE OF $10,000. REVISE WRITTEN PROCEDURES TO ADDRESS FINDINGS NOTED. Summary: DURING TEH REVIEW PERIOD, THE FIRM DID NOT REPORT THE CORRECT TIME OF TRADE TO THE REAL-TIME-TRANSACTION REPORTING SYSTEM (RTRS) FOR CERTAIN MUNICIPAL SECURITIES TRANSACTION AND ALSO DID NOT REPORT CERTAIN TRANSACTIONS TO THE RTRS WITHIN 15 MINUTES OF THE TIME OF TRADE AS REQUIRED BY MSRB RULE G-14. AS SUCH, THE FIRM'S SUPERVISORY PROCEDURES WERE DEEMED NOT TO PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH MSRB RULES CONCERNING REPORTING MUNICIPAL SECURITIES TRANSACTIONS.

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO AN ACCEPTANCE, WAIVER & CONSENT ASSERTING THAT IT FAILED TO IDENTIFY AND APPLY SALES CHARGE DISCOUNTS TO CERTAIN CUSTOMERS' PURCHASES OF UNIT INVESTMENT TRUSTS (UITS) AND THAT IT FAILED TO ESTABLISH, MAINTAIN AND ENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNED TO ENSURE CUSTOMERS RECEIVED SALES CHARGE DISCOUNTS. THE FIRM RELIED PRIMARILY ON ITS REGISTERED REPRESENTATIVES TO APPLY APPROPRIATE UIT SALES CHARGE DISCOUNTS. Status: Final Sanction Detail: THE FIRM WAS CENSURED, FINED $100,000 AND PAID $85,281.62 IN RESTITUTION TO CUSTOMERS. IS SHOULD BE NOTED THE FIRM REIMBURSED CLIENTS UNILATERALLY LONG BEFORE REQUIRED TO DO SO BY FINRA.

Allegations: FINRA ALLEGES THAT BETWEEN SEPTEMBER 2016 THROUGH SEPTEMBER 2018, CENTAURUS FAILED TO REASONABLY SUPERVISE A REGISTERED REPRESENTATIVE'S RECOMMENDATIONS OF UITS, A PREFERRED STOCK AND A BDC IN VIOLATION OF FINRA RULES 3110(A) AND (B) AND 2010. Status: Final Sanction Detail: $50,000 FINE. RESTITUTION IN THE AMOUNT OF $388,962.13 TO CUSTOMERS IDENTIFIED BY FINRA, TO BE PAID JOINTLY AND SEVERALLY WITH THE REGISTERED REPRESENTATIVE. Summary: ON MAY 5, 2023, AN OFFER OF SETTLEMENT WAS FINALIZED WITH FINRA REGARDING THIS MATTER. CENTAURUS, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, AGREED TO A $50,000 FINE. CENTAURUS ALSO AGREED TO RESTITUTION IN THE AMOUNT OF $388,962.13 FOR CUSTOMERS IDENTIFIED BY FINRA, TO BE PAID JOINTLY AND SEVERALLY WITH THE REGISTERED REPRESENTATIVE.

Allegations: THE STATE ALLEGED POTENTIAL VIOLATIONS OF §§ 11-51-410 (1)(B), (G), AND (I), C.R.S.; 3 CCR 704-1 AND COMMISSIONER RULES 51-4.5 AND 51-4.7(B), (G)(2); AND FINRA RULES 3110(A)(1), (A)(6) AND (B)(1). Status: Final Sanction Detail: SEE 12B ABOVE.

Allegations: THE FIRM PROVIDED INCOMPLETE INFORMATION ON A NON-RESIDENT INSURANCE RENEWAL APPLICATION DATED JULY 22, 2016. Status: Final Sanction Detail: $500 FINE PAID SEPTEMBER 20, 2016. $625 HEARING COST PAID NOVEMBER 14, 2016. Summary: THE FIRM WAS FOUND TO HAVE PROVIDED INCOMPLETEINFORMATION ON A RENEWALAPPLICATION DATED JULY 22, 2016. WHILE THE HEARING EXAMINER DID NOT FIND THAT THE FIRM INTENTIONALLY VIOLATED ANY RULES, IT DID FAIL TO MAKE A DISCLOSURE WITHIN THE STATUTORY TIME FRAME.

Allegations: DURING THE APPROXIMATE PERIOD JULY 2009 THROUGH AUGUST 2009 CENTAURUS TRANSACTED INSURANCE BUSINESS WITH A LAPSED LICENSE. Status: Final Sanction Detail: FINE OF 750.00 WAS LEVIED AND PAID ON DECEMBER 11, 2009. Summary: THE FIRM HAS BEEN LICENSED AND COMPLIANT FOR INSURANCE IN THE STATE OF NEW YORK SINCE 1993. UNFORTUNATELY WE DID NOT RECECEIVE OUR APPLICATION FOR RENEWAL WHICH WAS DUE ON JUNE 30, 2009. UPON DISCOVERY THAT OUR LICENSE HAD LAPSED, REININSTATEMENT OF SAID APPLICATION WAS SUBMITTED TO THE DEPARTMENT ON JULY 24, 2009. CENTAURUS RECEIVED A REINSTATED LICENSE EFFECTIVE AUGUST 13, 2009.

Allegations: THE NEVADA SECURITIES DIVISION ALLEGED THAT CENTAURUS DID NOT COMPLY WITH ONE OF THE PROVISIONS OF AN AGREEMENT IT ENTERED INTO REGARDING THE SUPERVISION OF ONE OF ITS REGISTERED REPRESENTATIVES BY NOT NOTIFYING THE DIVISION IN WRITING WITHIN TEN CALENDAR DAYS OF A CHANGE IN REPRESENTATIVE'S SUPERVISOR. Status: Final Sanction Detail: THE AMOUNT OF THE FINE WAS $5,000, IT WAS PAID ON 2/10/20110 AND NO PORTION OF THE PENALTY WAS WAIVED. Summary: WITHOUT ADMITTING OR DENYING THAT STTATEMENT OF FACTS AND CONCLUSIONS OF LAW CONTAINED INTHE ADMINSTRATIVE ORDER, CENTAURUS CONSENTED TO THE ENTRY OF THE ORDER AND A $5,000 FINE TO SETTLE A MATTER IN WHICH IT WAS ALLEGED THAT IT VIOLATED ONE PROVISION OF AN AGREEMENT IT ENTERED INTO REGARDING THE SUPERVISION OF ONE OF ITS REGISTERED REGISTERED REPRESENTATIVES BY NOT NOTIFYING THE DIVISION IN WRITING WITHIN TEN CALENDAR DAYS OF A CHANGE IN REPRESENTATIVE'S SUPERVISOR.

Allegations: THE SECURITIES COMMISSION OF SOUTH CAROLINA ("SCSC") ALLEGED THAT: DURING THE RELEVANT PERIOD, CFI AND CERTAIN SOUTH CAROLINA REGISTERED REPRESENTATIVES ("CFI RRS") RECOMMENDED STEEPENERS AND/OR CORPORATE BONDS TO CERTAIN CUSTOMERS WITHOUT REASONABLE GROUNDS TO BELIEVE THAT SUCH INVESTMENTS, IN THE AMOUNTS PURCHASED, WOULD BE SUITABLE FOR THOSE CUSTOMERS, IN VIOLATION OF S.C. CODE OF REGULATIONS § 13-501(A)(3); CENTAURUS FAILED TO REASONABLY SUPERVISE CERTAIN CFI RRS IN CONNECTION WITH CERTAIN STEEPENER TRANSACTIONS, IN VIOLATION OF S.C. CODE ANN. § 35-1-412(D)(9); CFI RRS MADE UNSUITABLE RECOMMENDATIONS TO CUSTOMERS BY RECOMMENDING STEEPENER TRADES IN CERTAIN CUSTOMERS' ACCOUNTS THAT EXCEEDED THE CONCENTRATION LIMITS OF THE SOUTH CAROLINA BRANCH OFFICE WSPS IN VIOLATION OF S.C. CODE OF REGULATIONS § 13-501(A)(3); CFI RRS CREATED AND DISTRIBUTED CUSTOM INCOME STATEMENTS AND PROJECTIONS, TO CERTAIN CUSTOMERS, IN VIOLATION OF S.C. CODE OF REGULATIONS § 13-501(C); CERTAIN BOOKS AND RECORDS, WERE OVERWRITTEN IN VIOLATION OF S.C. CODE OF REGULATIONS § 13-405(A)(1). Status: Final Sanction Detail: PAID A TOTAL OF $650,000; $425,000 CIVIL PENALTY AND $225,000 REIMBURSEMENT OF COSTS INCURRED BY THE DIVISION PAID 2/15/2023 Summary: THE FIRM HAS UNDERTAKEN, AMONG OTHER THINGS, TO: 1)WITHDRAW THE WSPS FOR THE SOUTH CAROLINA BRANCH OFFICE 2)RETAIN AN INDEPENDENT CONSULTANT TO REVIEW:(I) CFI'S POLICIES AND PROCEDURES DESIGNED TO PREVENT AND DETECT UNSUITABLE RECOMMENDATIONS OF STRUCTURED PRODUCTS(II) CFI'S SYSTEMS OF INTERNAL CONTROLS TO IMPLEMENT THE POLICIES AND PROCEDURES DESIGNED TO PREVENT AND DETECT UNSUITABLE RECOMMENDATIONS OF STRUCTURED PRODUCTS; AND (III) CFI'S BRANCH OFFICE OF SUPERVISORY JURISDICTION'S MAINTENANCE AND PRESERVATION OF RECORDS. 3)ADOPT, IMPLEMENT, AND MAINTAIN ALL POLICIES, PROCEDURES, AND PRACTICES RECOMMENDED IN THE REPORT OF THE INDEPENDENT CONSULTANT. 4)DESIGN AND IMPLEMENT POLICIES AND PROCEDURES WITH RESPECT TO STRUCTURED PRODUCTS 5)PAY A TOTAL OF $650,000 TO THE DIVISION, OF WHICH $425,000 IS DESIGNATED AS A CIVIL PENALTY AND $225,000 IS DESIGNATED AS THE REIMBURSEMENT OF COSTS INCURRED BY THE DIVISION IN ITS INVESTIGATION OF THE MATTERS DETAILED ABOVE.

Allegations: SEC ALLEGES BREACH OF FIDUCIARY DUTY BY CFI, A DUALLY- REGISTERED INVESTMENT ADVISER AND BROKER/DEALER, IN CONNECTION WITH ITS RECEIPT OF THIRD-PARTY COMPENSATION FROM CLIENT INVESTMENTS WITHOUT FULLY AND FAIRLY DISCLOSING ITS CONFLICTS OF INTEREST. IN PARTICULAR, SINCE AT LEAST 2014 CFI INVESTED CLIENTS IN: (1) MUTUAL FUND SHARE CLASSES THAT PAID CFI FEES PURSUANT TO RULE 12B-1 UNDER THE INVESTMENT COMPANY ACT OF 1940 ("12B-1 FEES"); (2) CERTAIN MUTUAL FUNDS THAT ALSO GENERATED SERVICE FEE REVENUE FOR THE FIRM; AND (3) CASH SWEEP PRODUCTS THAT LIKEWISE RESULTED IN CFI RECEIVING REVENUE SHARING. IN SPITE OF THESE FINANCIAL ARRANGEMENTS, CFI PROVIDED NO DISCLOSURE OR INADEQUATE DISCLOSURE OF THE MULTIPLE CONFLICTS OF INTEREST ARISING FROM THE FIRM'S RECEIPT OF THIS COMPENSATION. Status: Final Sanction Detail: CFI WAS REQUIRED TO PAY DISGORGEMENT OF $907,377, PREJUDGMENT INTEREST OF $124,019 AND A CIVIL MONETARY PENALTY OF $250,000. THESE AMOUNTS WERE PAID ON JUNE 11, 2021, THROUGH CONTRIBUTION TO A QUALIFIED SETTLEMENT FUND ESCROW ACCOUNT KNOWN AS AN SEC FAIR FUND. Summary: ON JUNE 2, 2021, A SETTLEMENT WAS FINALZIED WITH THE SEC REGARDING THIS MATTER. CFI AGREED, WITHOUT ADMITTING OR DENYING THE FINDINGS OF THE SEC, TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 206(2) AND 206(4) OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. CFI WAS CENSURED AND PAID DISGORGEMENT OF $907,377, PREJUDGMENT INTEREST OF $124,019 AND A CIVIL MONETARY PENALTY OF $250,000. THE AMOUNTS WERE PAID ON JUNE 11, 2021, THROUGH CONTRIBUTION TO A QUALIFIED SETTLEMENT FUND ESCROW ACCOUNT KNOWN AS AN SEC FAIR FUND. CFI HAS ALSO AGREED TO COMPLY WITH NOTIFICATION REQUIREMENTS AND CERTAIN UNDERTAKINGS RELATING TO SUPERVISION, DISCLOSURE AND COMPLIANCE PROGRAMS RELATED TO MUTUAL FUND SHARE CLASS SELECTION, CASH SWEEP PROGRAMS AND NO TRANSACTION FEE MUTUAL FUNDS.

Allegations: THE SEC ALLEGED THAT: CERTAIN REGISTERED REPRESENTATIVES FROM A BRANCH OFFICE (THE "CFI RRS") RECOMMENDED VARIABLE INTEREST RATE STRUCTURED PRODUCTS ("VRSPS") TO CERTAIN RETAIL CUSTOMERS FOR WHOM SUCH INVESTMENTS WERE UNSUITABLE IN LIGHT OF EACH OF THE SPECIFIC CUSTOMERS' FINANCIAL SITUATIONS AND NEEDS (THE "SPECIFIED CUSTOMERS"); BY MAKING UNSUITABLE RECOMMENDATIONS OF VRSPS TO THE SPECIFIED CUSTOMERS, THE CFI RRS AND CENTAURUS VIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT; CENTAURUS AND THE BRANCH MANAGER/REGISTERED PRINCIPAL OF CFI RRS FAILED TO REASONABLY SUPERVISE THE CFI RRS WITH A VIEW TOWARD PREVENTING AND DETECTING THEIR VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT; CENTAURUS FAILED TO REASONABLY IMPLEMENT ITS CUSTOMER-SPECIFIC SUITABILITY PROCEDURES TO DETERMINE WHETHER THE CFI RRS WERE MAKING THE REQUIRED SUITABILITY DETERMINATIONS PRIOR TO RECOMMENDING VRSPS TO THE SPECIFIED CUSTOMERS AND THAT THE BRANCH MANAGER/REGISTERED PRINCIPAL WAS FOLLOWING THE PROCEDURES; CENTAURUS FAILED TO MAKE AND KEEP CERTAIN REQUIRED RECORDS RELATING TO CERTAIN CUSTOMER ACCOUNTS; IN SOME INSTANCES, CFI FAILED TO MAINTAIN AND PRESERVE THIS INFORMATION FOR AT LEAST SIX YEARS IN VIOLATION OF EXCHANGE ACT SECTION 17(A) AND RULES 17A-4(E)(5) THEREUNDER, AND IN A NONREWRITABLE AND NON-ERASABLE FORMAT IN VIOLATION OF EXCHANGE ACT SECTION 17(A) AND RULE 17A4(F)(2) THEREUNDER; CENTAURUS FAILED TO MAKE AND KEEP CURRENT A RECORD INDICATING THAT, FOR EACH CHANGE IN A CUSTOMER'S ACCOUNT INVESTMENT OBJECTIVES, CENTAURUS FURNISHED THE CUSTOMER WITH A COPY OF THE UPDATED ACCOUNT RECORD OR ALTERNATIVE DOCUMENT CONTAINING THE INFORMATION REQUIRED BY RULE 17A-3(A)(17) WITHIN THIRTY DAYS OF CFI RECEIVING NOTICE OF ANY CHANGE, IN VIOLATION OF EXCHANGE ACT SECTION 17(A) AND RULE 17A-3(A)(17)(I)(B)(3) THEREUNDER. Status: Final Sanction Detail: DISGORGEMENT OF $4,876, PREJUDGMENT INTEREST OF $623, CIVIL PENALTY OF $750,000 PAID 2/14/2023. Summary: THE FIRM HAS UNDERTAKEN TO: 1)RETAIN AN INDEPENDENT CONSULTANT TO REVIEW:(I) CFI'S POLICIES AND PROCEDURES DESIGNED TO PREVENT AND DETECT UNSUITABLE RECOMMENDATIONS OF STRUCTURED PRODUCTS(II) CFI'S SYSTEMS OF INTERNAL CONTROLS TO IMPLEMENT THE POLICIES AND PROCEDURES DESIGNED TO PREVENT AND DETECT UNSUITABLE RECOMMENDATIONS OF STRUCTURED PRODUCTS; AND (III) CFI'S BRANCH OFFICE OF SUPERVISORY JURISDICTION'S MAINTENANCE AND PRESERVATION OF RECORDS. 2)ADOPT, IMPLEMENT, AND MAINTAIN ALL POLICIES, PROCEDURES, AND PRACTICES RECOMMENDED IN THE REPORT OF THE INDEPENDENT CONSULTANT; 3)CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT AND SECTION 17(A) OF THE EXCHANGE ACT AND RULES 17A-4(E)(5), 17A-4(F)(2), AND 17A-3(A)(17)(I)(B)(3) THEREUNDER; 4)PAY DISGORGEMENT OF $4,876 PLUS PREJUDGMENT INTEREST OF $623 AND A CIVIL MONEY PENALTY OF $750,000 TO THE SECURITIES AND EXCHANGE COMMISSION.

Allegations: THE LDI ALLEGED THAT THE FIRM DID NOT DISCLOSE AN ADMINISTRATIVE ACTION ON THREE LICENSING RENEWAL APPLICATIONS AND UNTIMELY REPORTED TWO ADMINISTRATIVE ACTIONS IN VIOLATION OF LA. R.S. 22:1554 (A)(2) AND LA. R.S. 22:1563 (A). Status: Final Sanction Detail: $500 FINE. Summary: WITHOUT ADMITTING OR DENYING ANY OF THE FACTS AND/OR CONCLUSIONS OF LAW CONTAINED IN THE ADMINISTRATIVE ACTION, CENTAURUS WAS SUBJECT TO THE ENTRY OF AN ADMINISTRATIVE ACTION AND $500 FINE. IT SHOULD BE NOTED THAT THE FIRM DID NOT INTENTIONALLY FAIL TO REPORT OR DISCLOSE ANY INFORMATION THAT IS THE SUBJECT OF THIS DRP NOR DID IT INTENTIONALLY VIOLATE ANY REPORTING OR DISCLOSURE RULES. THE INFORMATION REFERENCED IN THE ABOVE PARAGRAPH WAS APPROPRIATELY AND TIMELY DISCLOSED ON THE FIRM'S FORM BD, THE CENTRAL REGISTRATION DEPOSITORY AND FINRA'S BROKERCHECK.