The Rosca Scarlato LLC law firm investor rights attorneys are investigating former broker Bryon Martinsen’s alleged participation in private securities transactions by facilitating the sale of alternative investments with 57 firm customers, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
Securities lawyer Alan Rosca of the Rosca Scarlato LLC law firm and his colleagues are investigating Bryon Martinsen’s alleged violation of FINRA rules by participating in private securities transactions without prior notice to his firm. Investors who are concerned about their investments with Martinsen are encouraged to contact attorney Alan Rosca or his colleagues for a free case evaluation and discussion of available options, or to provide any useful information, by calling toll free 888-998-0530, via email at arosca@rscounsel.law, or through the contact forms on this page.
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Bryon Martinsen Suspended and Fined by FINRA
According to the AWC signed by Bryon Edwin Martinsen, without admitting or denying the findings, he agreed to being suspended for 15 months from associating with any FINRA member in all capacities and to pay a $10,000 fine. According to FINRA, between October 2014 and January 2020, Martinsen improperly facilitated the sale of approximately $1,100,000 in alternative investments through 55 transactions with 57 firm customers.
The AWC reveals that Martinsen allegedly participated in private securities transactions by purchasing the alternative investments from his clients, or by introducing firm customers who wanted to sell their illiquid investments, such as real estate investment trusts, to customers who wanted to buy alternative investments.
In addition, FINRA is alleging that between August 2014 and February 2021, Bryon Martinsen paid a combined about of $400,000 to 38 firm customers to compensate them for losses in connection with securities investments that Martinsen had previously recommended.
Martinsen Has Been the Subject of Multiple Customer Dispute Disclosures
The most recent customer dispute disclosed on Martinsen’s FINRA Brokercheck report was filed in December 2021. The customer alleged overconcentration in illiquid investments and agreed to settle the dispute in exchange for $15,801.50.
Another customer dispute disclosure reveals that in April 2020 a customer filed a dispute alleging $5,000,000 in damages as a result of misrepresentation and concentration in unsuitable investments. Martisen’s Brokercheck report shows that in November 2021 the customer was paid $985,000 to settle the dispute.
In April 2021 a Martinsen customer filed a FINRA arbitration case alleging unsuitable investment recommendations in connection with real estate security investments. The customer requested $1,700,000 in alleged damages and in August 2021 accepted $217,818.19 to settle the dispute, the Brokercheck report shows.
In early October 2020, another Bryon Martinsen customer filed a dispute with FINRA, requesting alleged damages of $3,000,000. The customer subsequently alleged in a court proceeding that Martinsen invested their accounts in unsuitable, high-risk illiquid investments, to include variable annuities, real estate securities, and direct investments.
Another customer filed a complaint with FINRA in February 2019, alleging unsuitable real estate investment recommendations, and a few months later accepted $25,000 to settle the dispute.
In mid-2018 a Martinsen customer filed a case with FINRA alleging unsuitable investments, misrepresentations, and omission of material risks, and accepted $10,000 to settle the dispute in February 2019.
A few years prior, in November 2014, a customer filed a complaint alleging breach of fiduciary duty, common law fraud, negligence, misrepresentation/omissions, and negligence in connection with purchasing non-traded REITs, leasing equipment funds, and private placements. In April 2016 the customer accepted $86,500 to settle the dispute.
The Brokercheck report further reveals that in June 2007, a Bryon Martinsen customer filed a complaint alleging unsuitable variable annuities and mutual funds products, which reportedly settled for $7,227 paid by Martinsen.
In 2006 a customer alleged misrepresentation, negligence, fraud, unsuitability, and omissions, among others, in connection with viatical contracts and the dispute shows as settled for $50,000, out of which $35,000 was reportedly paid by Bryon Martinsen.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise specifically indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any Brokercheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog and are the governing materials in case of any inconsistencies or typos in this blog. While the customer complaints mentioned in the Brokercheck report allege misconduct by Bryon Martinsen, the Brokercheck report does not appear to indicate whether he was a named party to those customer complaints, or the customers took action solely against the broker-dealer firm(s) that employed him at the time of the alleged conduct. Readers interested to learn more are encouraged to read the Brokercheck report or contact the Rosca Scarlato investor lawyers.
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Bryon Martinsen Has Been Registered with FINRA Since 1987
Bryon Martinsen joined the securities industry in February 1987, when he was registered with The Equitable Life Assurance Society of the United States in New York, where he stayed until October 1999. Simultaneously, Martinsen was registered with AXA Advisors, LLC in New York until September 1999, when he was reportedly discharged for involvement “in outside business activities which he had previously been advised to cease and desist.”
Since September 1999, Bryon Edwin Martinsen has been registered as a broker dealer with Centaurus Financial, Inc. in Kings Park, New York. Martinsen is also registered with Centaurus as an investment adviser since September 2011.
Potential Options for Bryon Martinsen Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating Bryon Martinsen’s alleged participation in private securities transactions involving alternative investments.
The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors in cases ranging from arbitrations to class actions.
Investors who are concerned about their investment with broker Bryon Martinsen are encouraged to contact Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
