February 2017-San Antonio, Texas
We are investigating Dion R. Padilla, a stockbroker who was formerly employed by NEXT Financial Group in San Antonio, Texas, on behalf of a former employee of AT&T who alleges that her AT&T retirement account was mishandled.
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 two prior customer disputes that were resolved with cash settlements:
- In FINRA arbitration 16-2163, a customer of NEXT Financial Group alleged damages of $342,000 in connection with an investment in a variable annuity. That case was settled 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.
Recently, 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 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.
If you have information which you believe is helpful to our investigation, please contact us. 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.
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.
Florida-561 391 1900