Category Archives: Annuities

Dion R. Padilla Investigation Update-Former NEXT Financial Group Broker-San Antonio, TX

OCTOBER 2017 -San Antonio, Texas

We continue our investigation of former NEXT Financial Group broker Dion Padilla who discloses that several of his customers have brought claims against his former employer for misrepresentations and losses related to the purchase of annuities. In early 2017 Padilla was sanctioned and suspended by securities regulators to resolve allegations that he made an unauthorized purchase of an annuity and hid that fact from the customer. Details below.

JUNE 2017 UPDATE-In May 2017 a customer of NEXT Financial Group filed FINRA Case #17-2402 alleging that in 2007 he purchased a variable annuity and relied on Padilla’s representations that he had a product that guaranteed a monthly distribution for the remainder of his life, however no guaranteed income rider was included with the annuity purchase. The customer seeks damages of $465,500.

MAY 2017 UPDATE– A customer of NEXT Financial Group made a claim seeking damages of $970,578 , alleging that Dion Padilla misrepresented the monthly distributions, benefits and dividends to be received on a variable annuity. In May 2017 2017, NEXT Financial disclosed that the claim was denied and that it is not currently pending.

FEBRUARY 2017

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 $347,000 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 of which Padilla contributed $54,400 to the settlement.

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. 

REGULATORY ACTION FOR SALE OF ANNUITY TO AT&T EMPLOYEE

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Keith Fontenot-Wells Fargo Clearing Services, Inc. Broker- Discloses 2 Customer Disputes – Lafayette, LA

June 2017 -Lafayette, LA

According to publicly available records Keith A. Fontenot  (CRD#2296303) ,  a  stockbroker who currently is employed by Wells Fargo Advisors, disclose 2 customer disputes.

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.

In FINRA Case 15-2471 a Wells Fargo Advisors customer sought  damages in an unstated amount  and alleged misleading and unsuitable recommendations regarding buying and selling annuities. In October 2016 that case was settled for $400,000.

In currently pending FINRA case 17-1181 a customer of Wells Fargo Clearing Services seeks damages of $80,000 and alleges unsuitable recommendations to invest in equities.

Keith Fontenot has been employed with Wells Fargo Clearing Services since November 2016.  Before then he was employed with Wells Fargo Advisors since May of 2009.

If you have losses  in an account handled by Keith Fontenot contact us to discuss your legal options.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Christopher D. Sinkula Investigation-Janney Montgomery Scott Broker-Stuart, FL

June 2017-Stuart, Florida

We are investigating Stuart-based Janney Montgomery Scott stockbroker Christopher D. Sinkula. FINRA records indicate that Sinkula has been employed by Janney Montgomery Scott since 8/2008.

Our client is a single lady approaching retirement who alleges damages for  unsuitable investments which she alleges were purchased for her account by Sinkula.

Sinkula’s official broker records disclose that two of his customers brought actions that resulted in cash settlements:

  • In FINRA Case 12-01357 a customer of CItigroup Global Markets, his prior employer, sought damages of $879,680 alleging that Sinkula misrepresented the features of variable annuities that he recommended. That case was settled for $200,000.
  • In NASD Case 97-0761 a customer of A.G. Edwards, his prior employer, sought damages of $67,540 and alleged breach of contract, breach of fiduciary duty, account related negligence and failure to execute. That case was settled for $46,000.

If you have information you feel could be helpful to this investigation, please contact Nan Thompson at 561 391 1900.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Michael Jump-Former Investment Planners Inc. Broker-Discloses Customer Disputes/Termination-Somonauk, IL

June 2017-Somonauk, IL

According to publicly available records Michael A. Jump  (CRD#1146669) ,  a  stockbroker currently registered with Chelsea Financial Services  discloses 2 regulatory events, four customer disputes and a termination.

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.

In 2015 FINRA fined Jump about $6,000 and suspended him for two months to resolve allegations that he negligently misrepresented information pertaining to the fees associated with replaced variable annuities.

In 9/2016 a customer of Investment Planners settled a claim that they were sold an unsuitable  indexed based annuity.

In January of 2016, Jump was discharged from Investment Planners, Inc. , who made the following allegation in connection therewith:  “Rep used discretion in client’s account without permission in performing unauthorized mutual fund trades.”

Michael Jump has been employed by Chelsea Financial Services since 8/2016. His prior employment history includes Mutual Trust Company of America Securities and  Investment Planners.

If you have losses  in an account handled by Michael Jump  contact us to discuss your legal options.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Christopher Jansen – Broker Currently Registered with Newbridge Securities- Discloses Four Customer Disputes and Two Terminations – Princeton, NJ

June 2017 – New York, City

The FINRA records of  Christopher C. Jansen ,  a  stockbroker who is currently registered with Newbridge Securities disclose a pending customer dispute,  3 prior customer disputes and two terminations from employment.

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.

While employed by Emmett A. Larkin Co. , a customer was awarded $59,056 in NASD arbitration 2-3827. The customer alleged unauthorized trading and failure to follow instructions.

While Jansen was employed with Essex National Securities,  two customer disputes were brought alleging misrepresentation of annuities.    Both cases were settled for small amounts.

In a currently pending  matter a customer of Invest Financial Corporation,  alleges misrepresentation in the sale of a variable annuity and seeks damages of over $17,000.

In 12/2016, Jansen was discharged by Invest Financial Corporation who alleged “misrepresentation of features and guarantees associated with annuities”.

In 5/2001 Jansen voluntarily resigned from Wall Street Financial.

Jansen has been employed by Newbridge Securities  since 4/2017.  He was with Invest Financial Corporation  from 10/2015-1/2017, and with Essex National Securities 7/2-13-10/2015. Prior employment includes Regal Securities, PNC Investments and Garden State Securities.

If you have questions about an account  handled by Christopher Jansen , contact us to discuss your options.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Mark A. Kemp Investigation-McNally Financial Services Broker-Corpus Christi, TX

June 2017 – Corpus Christi, Texas

According to publicly available records Mark A. Kemp  (CRD#2057200) ,  a  stockbroker who currently works for San Antonio-based McNally Financial Services Corp.  discloses a prior regulatory event, 7 prior customer disputes and 2 terminations from employment.

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.

IN 4/2012, Kemp was fined $5,000 and suspended five days by FINRA to resolve allegations that in 11/2009 while employed by NEXT Financial Group, he mismarked seven order tickets for a penny stock as unsolicited when, in fact, they were solicited. FINRA Case 2009018570501.

Prior customer disputes against Mark A. Kemp resulting in the payment of compensation include:

  • FINRA Case 9-5086-While employed by Hornor, Townsend and Kent a customer sought damages of $320,000 and alleged that Kemp engaged in unauthorized trading and recommended unsuitable securities and annuities inconsistent with their financial situation, risk tolerance and investment objectives. That case settled for $43,000.
  • FINRA Case 9-03476-A customer of Hornor, Townsend and Kent sought damages of $538,900 alleging that Kemp misled them about suitable strategies and investments, engaged in unauthorized transactions and failed to follow their directions. The case settled for $145,000.
  • Nueces County, TX,  Case 00-4498C- a group of customers of MONY Securities Corporation alleged that Kemp and others were engaged in the sale stock in Worldhome Industries. The customers alleged that none of the funds they invested went to the compan. That case was settled for $1,133,000.

Kemp has been employed  by McNally Financial Services since 4/2010.  He was previously employed by NEXT Financial Group, Hornor, Townsend & Kent and MONY Securities. Kemp discloses a business affiliation with Kemp Financial Services in Corpus Christi, TX.

In 11/1998 Kemp was discharged by MONY Securities who alleged that Kemp participated in selling of private, non approved, securities, “selling away”.

In 11/2009 Kemp was discharged by NEXT Financial Group who made the following allegation on Kemp’s FINRA record: “Solicitation of penny stock in violation of firm policy and failure to observe high standards of commercial order and equitable principal trade.” Kemp indicated on FINRA records that he was discharged because it was alleged that he solicited a penny stock against firm policy.

If you have losses in an account handled by Mark A. Kemp, you may be able to recover damages from his employer through FINRA arbitration. Call to discuss your options.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Robert Hudson-Former VSR Financial Services Broker-Discloses Customer Dispute Over Annuity Purchase-Essex Junction, VT

April 2017-Essex Junction, VT

The FINRA records of  Robert J. Hudson, Jr.  ,  a  stockbroker who is currently  employed by  Summit Brokerage Services  disclose 2 prior regulatory events, a pending customer dispute, a prior final customer dispute and a termination from employment.

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.

In February 2017 a customer of VSR Financial Services alleged damages of $250,000 in connection with the sale/surrender of annuities that triggered substantial tax liabilities for 2010-2015. That matter is currently pending.

Robert Hudson has been employed by Summit Brokerage Services since 9/2016. Prior to that he was employed by VSR Financial Services from 8/2006-11/2016. Hudson discloses a business affiliation with Strategic Wealth Services.

VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments . In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

 VSR wound down operations at the end of 2016 and transferred most of their brokers and customer accounts to Summit Brokerage ServicesSee this for more information regarding VSR Financial Services.

If you have questions about an account  handled by Robert Hudson  or have losses on alternative investments purchased from VSR Financial Services call for a no charge consultation.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870