On August 15, 2025, federal regulators suspended William Burks. The charges stem from allegations that Burkes recommended too high of a concentration of REITs and BDOs.
The Financial Industry Regulatory Authority (FINRA) began its investigation into Burks in 2021. Burks was at the time, and still is, a registered representative of Centaurus Financial. From the period of 2017 through 2020, Burkes subjected investors to inappropriate liquidity and substantial risk by overconcentrating in BDOs and REITs, per FINRA.
A non-traded REITs and BDOs do not trade on a national securities exchange, and the secondary markets may be limited. Regulators have issued warnings to brokers alerting of issues with these investments. These warning are numerous over the past two decades. The NASD in 2003 reminded brokers that, because of their particular risks, these investments “may be suitable for recommendation to only a very narrow band of investors capable of evaluating and being financially able to bear those risks.” In 2011, FINRA highlighted that the investments “are generally illiquid, often for periods of eight years or more.” FINRA also stated that “[ e ]arly redemption of shares is often very limited” in a manner that makes them inappropriate. These are just some of the warnings.
Many states limit the concentration into these assets, even for the most sophisticated investors, to 10% of a portfolio. This not only reflects the opaque nature, illiquidity and risk of such investments but also the inappropriate motivations to recommend these investments.
Jeffrey Pederson has successfully represented dozens of investors concerning the inappropriate sales of such investments over the past 20 years. Please contact him at the number above if you have concerns with such investments or otherwise wish to discuss this matter.
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