William C. Burks II Suspended by FINRA Over Unsuitable Investment Recommendations

Posted: September 23, 2025

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William Charles Burks II (CRD# 2944992), a Flower Mound, Texas-based investment advisor affiliated with Centaurus Financial, Inc., has been suspended by the Financial Industry Regulatory Authority (FINRA). The disciplinary action stems from allegations that Burks recommended high-risk, illiquid investments to clients whose financial goals and risk profiles did not support such strategies

This investor alert is intended for current or former clients of Burks who may have suffered financial harm due to these recommendations. If you are among them, you may have grounds to pursue recovery of your investment losses.

FINRA Regulatory Action

On August 21, 2025, FINRA issued a formal disciplinary action against Burks, which included a four-month suspension from acting in any registered capacity. The suspension runs from September 15, 2025, through January 14, 2026. He was also fined $10,000.

According to FINRA, Burks recommended that three clients invest an “unsuitably high concentration” of their portfolios in illiquid alternative investments or those with limited liquidity. These products included non-traded real estate investment trusts (REITs), business development companies (BDCs), and interval funds.

FINRA found that these investment strategies subjected the clients—who had low to moderate risk tolerances and income-preservation objectives—to a substantial risk of loss.

The regulator’s findings indicated that the risk profiles of these clients were not accurately reflected on transaction paperwork submitted to Centaurus Financial. All three clients filed arbitration claims related to Burks’ investment recommendations. Two of those claims have since settled.

Burks consented to the sanctions without admitting or denying FINRA’s findings.

Customer Complaints and Arbitrations Involving Willaim Burks

In addition to the regulatory action, Burks has been named in multiple customer disputes:

  • August 2023: A client alleged unsuitable, high-risk, and illiquid investment recommendations made between 2017 and 2019. The claim settled for $299,000.
  • January 2023: A complaint concerning investment activity between 2009 and 2013 alleged negligence and unsuitable recommendations. This case was closed with no action taken.
  • August 2024: A claim alleges Burks recommended illiquid, speculative investments. The customer is seeking $200,000 in damages. The claim is pending.
  • February 2024: A $1 million claim alleges that Burks advised the client to invest in unsuitable, high-risk, illiquid securities. The claim is pending.
  • May 2023: A FINRA arbitration remains pending regarding allegations that Burks recommended risky, low-value OTC penny stocks. The claim is pending.

What This Means for Investors

Investors who worked with William Burks, particularly during his tenure at Centaurus Financial, should review their investment history to determine whether they were exposed to high-risk, illiquid products like non-traded REITs or BDCs. These types of alternative investments are not suitable for all investors, especially those with conservative investment goals or a need for liquidity.

Did William Burks Cause You to Suffer Financial Losses?

If you were a client of William Burks and have concerns about your investments, the securities attorneys at Levin Papantonio Rafferty may be able to help. Our experienced legal team has recovered millions of dollars for investors who were misled or sold inappropriate financial products.

To schedule a free consultation and learn about your options for recovering investment losses, contact Levin Papantonio today at (800) 277-1193 or visit www.levinlaw.com.

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