March 2025 | Based in Frisco, TX
Take action today to protect your financial future. If you’ve invested with Michael Lee Chauvenet, you may be entitled to compensation for unsuitable investment recommendations. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
Critical Details About Michael Lee Chauvenet
- Full Name: Michael Lee Chauvenet
- CRD Number: 1229930
- Current Location: Frisco, TX
- Current Employer: Centaurus Financial, Inc.
- Office Address: Frisco, TX
- Registration Status: Currently registered with 1 Self-Regulatory Organization and 7 U.S. states and territories
- State Licenses: Alabama, Florida, Illinois, Maine, New Jersey, Oklahoma, Texas
- Experience: In the industry since 1984 (approximately 41 years)
- FINRA BrokerCheck: One pending customer dispute alleging poor investment recommendations
- Previous Employers: Securities America, Inc. (1997-2011), Titan/Value Equities Group, Inc. (1991-1997), Royal Alliance Associates, Inc. (1990-1991)
- Ability to Recover Losses: Current customer complaint still pending, potential for arbitration
Introduction: Understanding the Allegations Against Michael Lee Chauvenet
Michael Lee Chauvenet, a financial advisor currently registered with Centaurus Financial, Inc. in Frisco, Texas, is facing allegations of providing unsuitable investment advice that allegedly resulted in significant financial losses for at least one investor. This investigation sheds light on the serious accusations against Chauvenet, whose four-decade career in the financial services industry is now under scrutiny due to questions about his investment recommendations.
Recent complaints filed with regulatory authorities suggest a pattern of concerning behavior that may have violated industry standards and potentially harmed investors. Specifically, a pending customer dispute alleges that Chauvenet provided “poor investment recommendations with a lack of return” in real estate securities, with claimed damages of $292,800.
Our investigation aims to provide investors with comprehensive information about Chauvenet’s background, the nature of the allegations, and potential recourse for those who may have suffered financial losses while working with him. If you’ve invested with Michael Lee Chauvenet and experienced unexpected losses, understanding your legal rights and options is essential.
Detailed Case Overview: The Allegations Against Chauvenet
In January 2025, a formal written complaint was filed against Michael Lee Chauvenet, alleging that he made poor investment recommendations that failed to deliver expected returns. According to FINRA BrokerCheck records, the complaint specifically involves real estate securities and alleges damages of $292,800.
The customer’s complaint centers on allegations that Chauvenet recommended unsuitable investments that did not align with the client’s investment objectives, risk tolerance, or financial circumstances. While the complaint does not specify the exact timeline of the alleged misconduct, it raises serious questions about Chauvenet’s approach to investment recommendations and his adherence to industry standards.
It’s worth noting that Chauvenet has denied the allegations, stating that the investments were suitable based on the customer’s objectives and financial circumstances. In his broker statement, he maintains that the investments were offered only after the customer reviewed all material documentation related to the investments, and that the customer confirmed in writing their understanding of the investments’ characteristics and risks.
However, the pending nature of this complaint warrants careful consideration, especially given the significant amount of claimed damages. Real estate securities often involve complex structures and can carry substantial risks that must be fully disclosed and explained to clients before investment decisions are made.
Historical and Background Information: Chauvenet’s Professional History
Michael Lee Chauvenet has been working in the financial services industry since 1984, accumulating approximately 41 years of experience. His career trajectory includes positions at several brokerage firms before his current role at Centaurus Financial, Inc., where he has been registered since April 25, 2011.
Chauvenet’s professional history includes:
- First Investors Corporation (1984-1989)
- UR Financial, Inc. (1989-1990)
- Royal Alliance Associates, Inc. (1990-1991)
- Titan/Value Equities Group, Inc. (1991-1997)
- Securities America, Inc. (1997-2011)
- Centaurus Financial, Inc. (2011-Present)
Throughout his career, Chauvenet has passed multiple industry examinations, including:
- General Securities Principal Examination (Series 24) in 1989
- Investment Company Products/Variable Contracts Principal Examination (Series 26) in 1985
- Securities Industry Essentials Examination (SIE) in 2018
- General Securities Representative Examination (Series 7) in 1989
- Investment Company Products/Variable Contracts Representative Examination (Series 6) in 1984
- Uniform Securities Agent State Law Examination (Series 63) in 1984
Additionally, Chauvenet maintains several other business activities, including:
- Mortgage Resources (President/CEO since 2005)
- Annuity Resources (President since 1995)
- Capital & Insurance Resources (Principal since 1991)
- Concerto Realty Group (Sole Proprietor since 2011)
This extensive involvement across multiple financial service sectors raises questions about potential conflicts of interest and whether Chauvenet has been able to dedicate sufficient attention to his clients’ investment needs at Centaurus Financial.
Red Flags & Warning Signs: Indicators of Potential Misconduct
Several red flags emerge from the current allegations against Michael Lee Chauvenet that investors should be aware of:
1. Unsuitable Investment Recommendations
The core of the pending complaint against Chauvenet alleges that he recommended investments that were not appropriate for the client’s needs or objectives. Suitable investment recommendations are a fundamental obligation for financial advisors, requiring them to:
- Understand the client’s investment profile, including financial situation, tax status, investment objectives, and risk tolerance
- Have reasonable grounds to believe the recommendation is suitable for the client
- Only recommend investments that align with the client’s stated goals and needs
2. Real Estate Securities Concerns
The involvement of real estate securities in the complaint is noteworthy. These investments often:
- Have limited liquidity, making them difficult to sell quickly
- May involve complex structures that are challenging for average investors to understand
- Often carry higher fees and commissions than traditional securities
- May have conflicts of interest regarding valuation and performance reporting
3. Multiple Business Activities
Chauvenet’s involvement in multiple business ventures raises questions about:
- Potential conflicts of interest between his various roles
- Whether he has devoted adequate time and attention to his securities clients
- Possible blurring of lines between his different business activities
- Whether clients fully understood which “hat” he was wearing during various transactions
4. Long-term Issues with Disclosure
While the BrokerCheck report shows only one pending complaint, the nature of the allegation suggests possible issues with:
- Complete disclosure of investment risks
- Transparency regarding fees and costs
- Clear communication about expected returns
- Alignment of investments with stated client objectives
5. Potential Supervision Issues
Given Chauvenet’s multiple business activities and the current allegations, questions arise about:
- The quality of supervision provided by his employing firm
- Whether Centaurus Financial, Inc. had adequate systems to detect unsuitable recommendations
- If proper due diligence was conducted on the real estate securities in question
- Whether compliance reviews were thorough enough to identify potential issues before they harmed investors
These red flags should prompt investors who have worked with Chauvenet to carefully review their accounts and investment recommendations to ensure they align with their stated objectives and risk tolerance.
Legal & Regulatory Framework: Standards for Financial Advisors
Financial advisors like Michael Lee Chauvenet are bound by various regulatory requirements and industry standards designed to protect investors. Understanding these obligations is crucial for investors assessing potential misconduct.
FINRA Rules Governing Broker Conduct
Several key FINRA rules apply to this situation:
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This fundamental rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Recommending unsuitable investments that result in significant client losses may violate this basic standard.
FINRA Rule 2111: Suitability
Perhaps the most relevant rule in this case, Rule 2111 requires that a broker have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. The suitability obligation has three main components:
- Reasonable-basis suitability: The broker must understand the potential risks and rewards of the recommended investment
- Customer-specific suitability: The recommendation must be appropriate for the particular customer based on their investment profile
- Quantitative suitability: A series of transactions must be appropriate when taken together, considering the customer’s profile
FINRA Rule 3110: Supervision
This rule requires brokerage firms to establish and maintain a system to supervise the activities of their registered representatives. If Chauvenet’s firm failed to adequately supervise his activities, they may share liability for any resulting customer losses.
SEC Regulations and Fiduciary Standards
While traditional brokers are generally held to a “suitability” standard, advisors may be subject to a higher “fiduciary” standard depending on their specific roles and registrations:
- Investment Adviser Representatives must act as fiduciaries, putting their clients’ interests above their own
- Brokers providing personalized investment advice may be subject to heightened standards
- The SEC’s Regulation Best Interest (Reg BI) has strengthened brokers’ obligations to act in clients’ best interests when making recommendations
Disclosure Requirements
Advisors are required to:
- Disclose all material facts about investments, including risks, costs, and potential conflicts of interest
- Provide prospectuses and other offering documents for securities
- Explain the nature and structure of complex investments
- Clearly communicate compensation arrangements and any conflicts of interest
State Securities Laws
In addition to federal regulations, Chauvenet is subject to the securities laws of the states where he is registered (Alabama, Florida, Illinois, Maine, New Jersey, Oklahoma, and Texas). These state laws often provide additional protections for investors and may have different requirements or remedies available.
Violations of these regulatory requirements can lead to disciplinary actions, including fines, suspensions, or even permanent bars from the securities industry. More importantly for affected investors, these violations may provide the basis for recovering investment losses through FINRA arbitration or other legal proceedings.
Guidance for Affected Investors: Steps to Protect Your Interests
If you’ve invested with Michael Lee Chauvenet and are concerned about your investments, taking prompt action is essential to protect your financial interests. Here are specific steps to consider:
1. Review Your Account Statements and Documents
Begin by collecting and organizing all documentation related to your relationship with Chauvenet, including:
- Account statements showing all transactions
- Investment confirmations and prospectuses
- Emails, letters, and other communications
- Notes from meetings or phone conversations
- Account opening documents and risk tolerance assessments
- Any marketing materials used to promote investments
Look for discrepancies between what was promised and what occurred, and note any investments that seem inconsistent with your stated goals.
2. Assess Performance Against Benchmarks
Evaluate how your investments have performed compared to appropriate benchmarks:
- Compare returns against relevant market indices
- Look for excessive fees or transaction costs
- Identify periods of unusual trading activity
- Analyze whether performance aligns with the risk level you agreed to
Real estate securities should be compared against appropriate real estate investment benchmarks rather than broad market indices.
3. Document Potential Red Flags
Pay particular attention to:
- Investments that were significantly riskier than you understood
- Recommendations that seemed inconsistent with your financial situation
- Pressure to invest quickly without adequate time for due diligence
- Promises of returns that seemed unrealistically high
- Recommendations to concentrate your portfolio in a single investment type
- Lack of clear explanation about investment structures, risks, or costs
4. Consult with a Securities Attorney
If you identify concerns, consulting with an attorney who specializes in securities law and investment fraud is crucial. These specialists can:
- Evaluate the strength of your potential claims
- Explain the FINRA arbitration process
- Assess potential damages
- Guide you through the complexities of securities regulations
- Determine if your case falls within the applicable statute of limitations
5. Understand the FINRA Arbitration Process
For most disputes with brokers, FINRA arbitration is the primary forum for resolution:
- Claims generally must be filed within 6 years of the event giving rise to the dispute
- The process is typically faster and less formal than court litigation
- A panel of arbitrators will hear evidence and make a binding decision
- Recovery can include compensatory damages, interest, and in some cases, punitive damages
- The costs are generally lower than traditional litigation
6. Consider Regulatory Complaints
In addition to seeking recovery of your losses, you may wish to file complaints with regulatory authorities:
- FINRA’s Investor Complaint Center
- The SEC’s Office of Investor Education and Advocacy
- Your state’s securities regulator
- The CFP Board (if the advisor holds the CFP® designation)
While these complaints may not directly lead to recovery of your losses, they can help protect other investors and create an official record of the alleged misconduct.
How Our Investment Fraud Attorneys Can Help
Our specialized investment fraud attorneys have extensive experience helping investors recover losses due to broker misconduct. Our approach includes:
Forensic Account Analysis
Our team conducts a thorough forensic analysis of your investment accounts to:
- Identify unsuitable recommendations
- Calculate actual versus appropriate levels of risk
- Quantify damages, including opportunity costs
- Detect patterns of misconduct that may not be obvious to investors
- Analyze trading frequency and commissions generated
FINRA Arbitration Expertise
With deep experience in FINRA arbitration proceedings, our attorneys:
- Understand how to present complex financial evidence effectively
- Have succeeded in recovering millions for defrauded investors
- Know how to counter common defenses raised by brokers and their firms
- Can negotiate favorable settlements before a formal hearing
- Are prepared to present compelling cases before arbitration panels
Contingency Fee Structure
We offer our services on a contingency fee basis, meaning:
- No recovery, no fee – you pay attorney fees only if we recover money for you
- Initial consultations are free and confidential
- You don’t need to worry about hourly billing adding to your financial stress
- Our interests are aligned with yours – we only succeed when you do
Comprehensive Legal Strategy
Our attorneys develop customized legal strategies that may involve:
- Claims against both the individual broker and the supervising firm
- Exploration of all potential legal theories, including unsuitability, misrepresentation, breach of fiduciary duty, and failure to supervise
- Addressing both registered securities and related investments
- Pursuing maximum recovery while minimizing stress for our clients
Investor Education
We believe in empowering our clients through education:
- We explain complex investment concepts in clear, understandable terms
- We help you understand what went wrong with your investments
- We provide guidance on how to avoid similar problems in the future
- We keep you informed at every stage of the legal process
If you invested with Michael Lee Chauvenet and experienced losses in real estate securities or other investments, don’t wait to explore your legal options. The statute of limitations for investment fraud claims can be as short as one to two years in some jurisdictions, so prompt action is essential to preserve your rights.
Don’t face the complex world of investment recovery alone. Reach out today for support from experienced securities attorneys who understand how to navigate these challenging waters. Call 800-950-6553 or visit our website to arrange your confidential, no-obligation consultation and take the first step toward potential recovery.
