Securities Fraud Lawyer Blog
The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities sales by Marcel Pahmer, a registered representative affiliated with Centaurus Financial Inc. and Newport Wealth Advisors.
The pending customer dispute that gives rise to this investigation concerns Marcel Pahmer’s sales of a number of high risk private placements, including Tasty Brands LP, Carter Multifamily Growth and Income Fund and GWG Holdings “L” Bonds. Mr. Pahmer recommended these illiquid, high commission investments to an elderly client who had requested investments to provide regular income with no stock market risk for her retirement. Instead, due to an over concentration in these high risk programs, the client suffered substantial losses.
These investments, which Mr. Pahmer touted as the foundation of a retirement “income strategy” have performed badly, jeopardizing the client’s retirement; GWG Holdings L Bonds parent company filed for bankruptcy; while Tasty Brands (a pizza hut and burger king franchisee) continues to struggle with inflation and wage pressures, and Carter Multi Family reported that it was suspending distributions in October 2023. These developments are not surprising given the excessive leverage and high costs associated with these programs.
Private placement investments entail significant risk, and are not suitable for most retail investors. In addition to heightened risk, it is not unusual to see fees of 12-15% taken off the top, meaning that for every dollar invested, only 85 cents goes towards the project.
The Securities and Exchange Commission and federal courts have long held that a broker dealer like Centaurus Financial that recommends investments is under a duty to conduct a reasonable investigation into the securities they sell, as well as the issuer’s representations about them. See Hanly v. SEC, 415 F.2d 589, 595-96 (2d. Cir. 1969).
Marcel Pahmer registration and disciplinary history
In order to sell investments to the public, financial advisors and broker dealers must either be registered or exempt from registration. FINRA maintains a database that the public can access to check the credentials of firms and financial advisors. The website, known as “broker check” has a listing for Marcel Pahmer, who was the subject of two other customer complaints; in 2014 and 2019. Both matters are listed as having been settled.
If you were sold unsuitable investments, or have had your account over concentrated in illiquid private placement investments, call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation to discuss your legal rights and options. Our firm takes cases on a contingency fee basis, with no money up front, and no money owed unless there is a recovery.
There is no charge for the initial consultation, so call (702) 380-3131 today to speak with an experienced securities attorney who will fight to recover your losses.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For over 30 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements exceed $100,000,000.