The Claimants, reside in Arizona, and brought their lawsuit to recover the financial losses they’ve suffered due to the alleged actions of the Respondent who allegedly failed to properly allocate and diversify the Claimants’ retirement portfolios. The lawsuit alleges that CENTER STREET SECURITIES, and their Financial Advisor, Chris Wright, purchased the speculative, non-traded REITs, Northstar Healthcare and Phillips Edison, and Jackson variable annuities for each of the Claimants’ IRAs. The lawsuit alleges that Chris Wright failed to disclose the high fees and commissions earned for his illiquid investment recommendations.
The lawsuit alleges that due to the over-concentration in high-commission and risky products, the Claimants have suffered significant losses of actual damages of no less than $99,000, during a time when the financial markets have enjoyed record returns.
CENTER STREET SECURITIES’ actions, the lawsuit alleges, in this case constitute: breach of contract, negligent supervision, breach of fiduciary duty, violation of FINRA rules and negligence.
Allegedly, Chris Wright may have sold these non-traded REITs to at least 50 of his clients. Chris Wright was not named in the lawsuit just Center Street Securities. It is alleged that these clients may not have known that these REITs, such as Northstar Healthcare contained CDO’s. CDO’s are among the riskiest investments on Wall Street and played a large role in the financial crisis in 2008-2009. A collateralized debt obligation (CDO) is a structured financial product that pools together cash flow-generating assets and repackages this asset pool into discrete tranches which can be sold to investors. The tranches in a CDOs vary in their risk profiles.
On May 20, 2019, Soreide Law Group posted the following article regarding financial advisor, Chris Wright, to their blog:
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, CHRISTOPHER WARREN WRIGHT (CHRIS WRIGHT) CRD#: 4134973, has 2 Disclosures on his CRD report, both are Customer Disputes. Chris Wright has been in the securities industry for 19 years and was registered with 4 firms, he has been registered with the following firm since 6/7/2010:
CENTER STREET SECURITIES, INC.
3181 Clearwater Dr Suite A
PRESCOTT, AZ 86305
Did your broker let you know when recommending Northstar Healthcare that it contained CDO’s? If you a client of CENTER STREET SECURITIES and/or their financial advisor, Chris Wright, and you experienced losses due to their recommendations or actions, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.