Nicholas Ellis Investigation: Investment Fraud Attorneys Reviewing Recent Customer Disputes

Last Updated: February 2025 (Tustin, CA)

The securities fraud attorneys at Patil Law P.C. are actively investigating financial advisor Nicholas M. Ellis (CRD# 1082891) following concerning regulatory disclosures. Mr. Ellis recently transitioned from Centaurus Financial to Kestra Advisory Services—a move that warrants close scrutiny given his history of customer disputes and regulatory issues.

Key Information: Nicholas Ellis Financial Advisor Background

• Name: Nicholas M. Ellis
• CRD Number: 1082891
• Current Location: Tustin, California
• Current Firms: Kestra Advisory Services & Kestra Investment Services (Since February 2025)
• Previous Employment: Centaurus Financial (2000-2025)
• Industry Experience: 40+ years (since 1983)
• Regulatory Status: Multiple FINRA disclosures
• State Registrations: Licensed in 12 states

Detailed Analysis of Current FINRA Arbitration Against Nicholas Ellis

According to FINRA BrokerCheck records, a significant customer dispute is currently pending against Mr. Ellis. The February 2025 filing (FINRA Case #25-00072) alleges:

• Customer claims that in November 2020, Ellis recommended and misrepresented unsuitable, illiquid corporate debt investments
• These investments allegedly proved difficult to liquidate when the customer needed access to capital
• The customer is seeking $70,000 in damages
• This case is currently pending arbitration resolution

Comprehensive Review of Nicholas Ellis’s Regulatory History

Ellis’s FINRA record reveals several significant disciplinary events:

September 1997 Regulatory Action

• Sanction: Censured, fined $20,000, and suspended as a General Securities Principal for two years
• Allegations: Ellis conducted a general securities business but failed to designate required principals
• Specific Violations: Failed to designate a Limited Principal-Financial and Operations, a Registered Options Principal, and a Municipal Securities Principal while executing options and municipal transactions
• Resolution: Accepted via Letter of Acceptance, Waiver & Consent without admitting or denying allegations
• Suspension Period: September 5, 1997 through September 4, 1999

December 1995 Regulatory Action

• Sanction: Censured and fined $2,500
• Allegations: Ellis permitted an employee he directly supervised to engage in securities business before the employee’s FINRA registration became effective
• Resolution: Settled via Letter of Acceptance, Waiver & Consent
• Fine Status: Paid in full on February 12, 1996

Major Customer Dispute (1995-1996)

• Allegations: Negligence, breach of fiduciary duty, misrepresentation, and omission of facts regarding real estate limited partnerships
• Product Type: Real Estate Limited Partnerships
• Claimed Damages: Initially alleged $7,549,351 in damages
• Resolution: Settled for $1,500,000 on March 29, 1996
• Ellis’s Contribution: $0 (settlement paid by firm)
• Case Details: According to Ellis’s statement, the real estate limited partnership program allegedly “went bad due to misconduct of the general partner” that neither Ellis nor his broker-dealer claimed to have known about

Red Flags for Investors Working with Nicholas Ellis

Current and former clients should be particularly vigilant regarding:

1. Pattern of alleged supervisory failures and regulatory violations
2. History of recommending illiquid investments that proved difficult to sell when clients needed liquidity
3. The dual roles as financial advisor and tax preparer (through Ellis Advisory Group), potentially creating conflicts of interest
4. Recent firm transition from Centaurus Financial (where he spent nearly 25 years) to Kestra Advisory Services in February 2025, shortly before a customer complaint was filed

Types of Investments That May Have Been Impacted

Based on the disclosed complaints, investors who purchased the following types of investments through Nicholas Ellis should consider having their portfolios reviewed:

• Corporate debt securities
• Real estate limited partnerships
• Illiquid alternative investments
• Any investments represented as safe or conservative that experienced significant losses

Recovering Investment Losses from Nicholas Ellis

If you’ve invested with Nicholas Ellis and experienced:

• Losses in illiquid investments
• Unsuitable investment recommendations based on your risk tolerance or financial needs
• Misrepresentations about investment risks or potential returns
• Products that were represented as safe but experienced significant losses

You may have legal options to recover your investment losses. Investment fraud attorneys specializing in broker misconduct cases can evaluate your situation and determine if you have a viable claim against Ellis or his employing firms.

Free Consultation with Investment Fraud Attorneys

The securities attorneys at Patil Law P.C. offer free, confidential consultations to evaluate potential claims against Nicholas Ellis or his former or current firms. They work on a contingency fee basis, meaning they only get paid if they help recover your money.

If you have concerns about investments recommended by Nicholas Ellis, contact attorney Chetan Patil online or call (800) 950-6553 to discuss your legal options.

This information is based on publicly available FINRA BrokerCheck records as of February 2025. Additional regulatory actions or customer disputes may have occurred since publication.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.