The Financial Industry Regulatory Authority (FINRA) has announced a settlement with Centaurus Financial, Inc (CFI) and Patrick Michael Carroll.

Between February 2016 and October 2019, Carroll violated FINRA Rules 2111, 2330, 1122, and 2010 by recommending unsuitable variable annuity exchanges, which caused customers to incur surrender charges.

For these and other violations, Carroll is suspended for 12 months and fined $10,000.

Between February 2016 and December 2025, the firm’s supervisory system and written supervisory procedures were not reasonably designed to supervise certain exchanges and purchases of variable annuities.

From February 2016 through December 2019, it failed to reasonably supervise certain of Carroll’s recommendations regarding the exchange of variable annuities. From June 30, 2020 to December 31, 2025, the firm failed to reasonably supervise two representatives and violated Regulation Best Interest (Reg BI) by failing to comply with Reg BI’s Conflict of Interest and Compliance Obligations regarding recommendations by the representatives to buy B-share variable annuities and enter into advisory agreements with the customers to manage the variable annuities’ sub-accounts.

Thus, CFI violated Reg BI, and FINRA Rules 3110, 2330 and 2010. It was censured, fined $475,000, and ordered to pay restitution of $634,488.56.

Carroll entered the securities industry in 1996. Carroll became associated with CFI as an Investment Company and Variable Contracts Products Representative in September 2006, as an Investment Adviser Representative in June 2010, and as a General Securities Representative in September 2014. Carroll remains associated with CFI in those capacities.

CFI has been a FINRA member since 1993. Its main office is in Anaheim, California. The firm has approximately 570 registered representatives and 364 branch offices. It conducts a general securities business. CFI has also been a registered investment adviser since 1999.