The customer alleges that in December 2019, the Registered Representative recommended and misrepresented an unsuitable, illiquid investment.

$84,000.00

The customer alleges that in December of 2020, the Registered Representative recommended an unsuitable investment.

$50,000.00

$12,500.00

Claimant alleges that the Registered Representative misappropriated her funds. No specific dates for the alleged activity were identified in the Statement of Claim.

$170,000.00

$130,000.00

Claimant alleges that the Registered Representative recommended and sold outside products that were unsuitable. No specific dates for the alleged activity were identified in the Statement of Claim.

$138,000.00

The customer alleges that the Registered Representative absconded with his funds. No specific dates for the alleged activity were identified in the Statement of Claim.

$300,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Joseph Michael Todd ("Todd" or "Respondent"). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. The Commission finds that on July 27, 2023, a judgment was entered by consent against Todd, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and from participating in the issuance, purchase, offer, or sale of any security (except for purchasing or selling securities in his own personal account), in Civil Action Number 5:23-cv-00431, in the United States District Court for the Middle District of Florida. The Commission's complaint alleged that from at least August 2016 through at least November 2022, in connection with the offer, purchase, and sale of securities, Todd misappropriated investor funds, falsely stated to investors that their funds would be invested in securities, sent out false account statements indicating that investors' funds were fully invested and earning returns, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors.

Order

Bar (Permanent)

Any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

8/17/2023

Participating in any offering of a penny stock

Indefinite

8/17/2023

The customers allege that the Registered Representative absconded with their funds.

$492,000.00

$240,000.00

The customer alleges that the Registered Representative absconded with her funds and never invested the money. It is worthy to note that Centaurus is unable to verify that the claimant was a client of Centaurus.

$99,500.00

$34,000.00

In March 2019, the customer alleges that the Registered Representative misrepresented unsuitable, high risk, high commission and illiquid Alternative Investments.

$100,001.00

$47,500.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission (the "Commission"), for its Complaint against Joseph Michael Todd ("Todd"), Todd Financial Services, LLC ("TFS"), and TFS Insurance Services LLC ("TFS Insurance"), alleges that Todd engaged in a fraudulent scheme and misappropriated at least $3 million from at least 20 customers of "Broker A," a dually registered broker-dealer and investment adviser that employed Todd as a registered representative. Todd obtained investor funds through deceptive means by instructing his Broker A customers to write checks payable to his entities TFS and/or TFS Insurance or to Todd by falsely assuring customers that he and his entities would invest their funds in various securities. Instead, Todd commingled investors' funds and kept the money for his own personal use, spending it on lavish real estate, boating, hunting, casinos, and adult entertainment. Todd perpetuated the fraud by making material misrepresentations to customers regarding the use of their funds in meetings that took place in person, in phone conversations, and in documents that he prepared and provided to customers. Because of their conduct, Todd, TFS, and TFS Insurance knowingly or recklessly committed securities fraud. Todd and TFS violated Section 17(a) of the Securities Act of 1933 (the "Securities Act") and Todd, TFS, and TFS Insurance violated Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder.

Judgment Rendered

Injunction

Prohibition

During the period of August 2021 through July 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable, illiquid and high-risk investments.

$900,000.00

$352,500.00

The customer alleges that in July of 2019, the Registered Representative misrepresented a non-profit organization and engaged in undisclosed outside business activities.

$100,000.00

$51,300.00

During the period of March 2018 through September 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable and high-risk investments.

$225,000.00

In June 2022, the customer alleges that the Registered Representative misappropriated funds.

$152,400.00

$112,000.00

During the period of 2019 and 2021, the customer alleges that the Registered Representative improperly recommended high risk and a illiquid investment and misappropriated funds.

$238,000.00

$154,797.68

FINRA

Respondent Todd failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

Indefinite

Continues until required payment is made or discharged.

4/25/2023

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Todd is suspended on April 25, 2023 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

During August 2021 through July 2022, the customers allege that the Registered Representative incorrectly exercised trading discretion and recommended illiquid investments.

$130,000.00

During the period of 2020 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.

$615,625.72

During 2014 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.

$16,500.00

$10,000.00

CENTAURUS FINANCIAL, INC.

Discharged

The Firm is investigating whether the Registered Representative violated Firm policy and industry rules with respect to an allegation of selling away and the receipt of customer funds. The Registered Representative has not cooperated with the investigation. The investigation is ongoing.

Todd was named in a customer complaint that asserted the following causes of action: outside business activities, selling away and private securities transactions; unsuitable investments and negligent account management; negligence and negligent supervision; bogus statement summaries; conversion; violations of the Florida Securities Act; sale of unregistered and non-exempt securities; breach of fiduciary duty and constructive fraud; violations of FINRA Conduct Rules and NYSE Board Rules; violations of statutes and industry rules related to senior investors, elderly persons, and disabled adults; and respondeat superior.

$500,000.00

This award has not been paid by or on behalf of Todd as of April 25, 2023.

The investments made through my broker/dealer were suitable and were recommended based on the customer's objectives, goals and financial circumstances and were offered only after their review of all material documentation related to the investment. The customers confirmed in writing that they not only received the requisite investment documentation/disclosures, but that they fully understood the characteristics and risks of the investments. At all times, I put the customer's interest first and I will vigorously defend this matter to the fullest extent of the law.

CLIENT ALLEGED THAT WHILE THE RR WAS AFFILIATED WITH EDWARD JONES HE PRESENTED HER WITH "OTHER [OUTSIDE] INVESTMENTS" WHICH WOULD GENERATE MONTHLY INCOME. BASED ON THE CESSATION OF MONTHLY PAYMENTS, CLIENT HAS ALLEGED MISAPPROPRIATION.

$26,000.00

CLIENT FILED COMPLAINT THROUGH FINRA (FINRA INQUIRY 2008-0142250). RR HAS RESPONDED BY INDICATING THAT CLIENT'S "LOSSES" ARE ATTRIBUTABLE TO THE EFFECTS OF CLIENT'S CONTINUED PRINCIPAL WITHDRAWALS COMPOUNDED BY STOCK MARKET FLUCTUATIONS. RR INDICATES THAT HE REPEATEDLY ADVISED CLIENT AGAINST SUCH WITHDRAWALS AND OF THE POTENTIAL CUMULATIVE EFFECTS (E.G. LOSS OF PRINCIPAL) YET, WHILE ACKNOWLEDGING THESE WARNINGS, CLIENT CONTINUED TO PERIODICALLY TAKE SUBSTANTIAL WITHDRAWALS.

CLIENTS ALLEGE REP MISREPRESENTED SURRENDER PERIOD OF ANNUITY AND FAILED TO PROVIDE CONTRACT IN A TIMELY FASHION.

$9,608.66

$9,608.66