Did you suffer investment losses with NEXT Financial Group (CRD# 43214) (SEC# 801-56786, 8-51356)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with NEXT Financial Group. If you suffered losses investing with NEXT Financial Group, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of May 5, 2020, NEXT Financial Group’s FINRA BrokerCheck Report contains the following:
24 Regulatory Event Disclosures
3 Arbitration Disclosures
3 Bond Disclosures
UPDATE 4/2/2020: Massachusetts and New Hampshire have fined NEXT Financial Group $475,000 for failure to supervise and comply with regulators related to sales of non-traded real estate investment trusts (REITs). The Massachusetts Securities Division announced it reached a settlement where NEXT Financial Group was ordered to pay $150,000. The penalty stems from sales practice violations and a failure to supervise operations (including allegedly unsuitable sales of REITs by an unidentified broker). The state of Massachusetts also alleged that some of the REIT sales exceeded limits as determined by a client’s overall liquid net worth. See Commonwealth of Massachusetts, Office of the Secretary of the Commonwealth Securities Division, Docket No. E-2017-0079, Consent Order.
UPDATE 1/7/2020: The New Hampshire Bureau of Securities has fined NEXT Financial Group $235,000 for allegedly failing to reasonably supervise the sale of non-traded real estate investment trusts (REITs) to a number of clients. Last week, the Massachusetts Securities Division also fined the broker-dealer $150,000 for unsuitable non-traded REIT sales.
UPDATE 10/25/16: The firm recently settled a claim brought by a customer alleging damages of $4,000,000 for breach of fiduciary duty, common law fraud, and negligent supervision in connection with recommendations of Tenant-In-Common (TIC) private placement investments.
Main Office Location
2500 WILCREST DRIVE
HOUSTON, TX 77042
2500 WILCREST DRIVE
HOUSTON, TX 77042
Business Telephone Number
NEXT Financial Group’s Direct Owners and Executive Officers
NEXT FINANCIAL HOLDINGS INC., SHAREHOLDER
ELIAS JR, EUGENE HENRI, DIRECTOR
JALLANS, LESLIE BERNARD (CRD#:1298338), CCO
KETTERER, DOUGLAS JOHN (CRD#:2050418), DIRECTOR
KNIGHT, BARRY GLENN (CRD#:1398160), PRESIDENT/CEO/DIRECTOR
MUELLER, CHRISTOPHER BRIAN (CRD#:2098597), SVP CHIEF OPERATIONS OFFICER
SMITH, PHILIP FRANCIS (CRD#:1565680), CFO/FINOP
Due Diligence Requirement
FINRA requires broker-dealers to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Broker-Dealers that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
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