Dion Padilla Investigation-Former NEXT Financial Group Broker-Settles Several Customer Suits Involving Annuities-San Antonio, TX

Dion Padilla Investigation-Former NEXT Financial Group Broker-Settles Several Customer Suits Involving Annuities-San Antonio, TX

Dion Padilla Investigation-Former NEXT Financial Group Broker-Settles Several Customer Suits Involving Annuities-San Antonio, TX 150 150 Robert Rex, Esq.

May 2019 -San Antonio, Texas

According to publicly available records Dion Rey Padilla ,  a  stockbroker who formerly worked for NEXT Financial ,  disclose a prior regulatory suspension and five prior customer disputes involving variable annuities.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Padilla discloses four prior customer disputes, all of which relate to the sale of annuities,  that were resolved with cash settlements:

  • In FINRA arbitration 17-2402 a customer of NEXT Financial alleged that although Padilla told him he the variable annuity he purchased had a guaranteed for life income rider, that feature was not actually a part of his purchase. In 7/2018 that case was settled for $90,000.
  • In FINRA arbitration 17-1516, a customer of NEXT Financial alleged that Padilla misrepresented the monthly distributions, benefits and advantages of a variable annuity. That case was settled in 5/2018 for $416,998.
  • In FINRA arbitration 16-2163, a customer of NEXT Financial Group alleged that Padilla failed to include a principal protection for life rider on the sale of a variable annuity and sought damages of $342,000 . That case was settled 3/2017 for $175,000.
  • In February 2014, a customer of NEXT FInancial Group alleged damages of $62,617 for the unauthorized purchase of a variable annuity. That case was settled for $69,400.

REGULATORY SANCTION FOR SALE OF ANNUITY TO AT&T EMPLOYEE

In February 2017, Padilla entered into an Order Accepting Offer of Settlement with the Financial Industry Regulatory Authority (FINRA) and was fined $10,000 and suspended for 15 months (3/2017-6/2018) from association with any FINRA member in all capacities. Disciplinary Proceeding 2014040362001. 

Without admitting or denying the allegations, Padilla agreed to the entry of certain findings and violations and to the entry of the sanctions described above. The findings and conclusions made by FINRA include:

  • Prior to transferring their accounts to NEXT Financial, a customer (who had worked for AT&T for 39 years) and his wife met with Padilla and stressed  that they did not want any of their funds invested in a variable annuity due to the high fees and because of their desire for liquidity.
  • Notwithstanding those desires, Padilla made unauthorized purchases of a variable annuity for the customer, investing over $789,000, the customer’s entire 401K rollover, in a variable annuity. Thereafter, when the customer inquired, Padilla misrepresented to the customer that the investment was not a variable annuity.

Padilla was employed by NEXT Financial from 2/2006-2/2017. He is not currently registered with any brokerage firm.

Investigations of other Next Financial Group brokers

If you have losses in an account handled by Dion Padilla , call to discuss how you may be able to recover damages from his prior employer.

Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)

Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.

FINRA Rule 2111- suitability

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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Rex Securities Law

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