Tag Archives: Douglas P. Simanski

Investigation of NEXT Financial Group RE: Misappropriation of Customer Funds-Houston, TX

February 2018

In connection with a currently pending lawsuit, we are investigating Houston, TX-based broker dealer NEXT Financial Group.

Publicly available records disclose a number of recent complaints by customers of  NEXT Financial  alleging  that their funds have been wrongfully converted by  NEXT Financial Group brokers, including the following:

  • Heidi Wivolin-In February 2018, Heidi Wivolin who was employed in the NEXT Financial Group office in Manalapan, FL, from 2009-2014 pleaded guilty to mail and tax fraud and agreed to pay restitution of over $2.5 million. Sentencing is set for May 2, 2018. See this for details. 
  • Joshua Ray Abernathy-In September 2017, NEXT Financial Group entered into a settlement agreement with Virginia Securities regulators which included a fine of $50,000 and costs of $10,000 for failing to properly supervise their former broker Joshua Abernathy, who had confessed to securities fraud and misappropriation of over $442,000 in customer funds.
  • Tye Williams-September 2016- Frisco, TX-based NEXT Financial Group broker Williams was barred from the securities industry by FINRA in connection with an investigation regarding a customer complaint that he had converted over $1 million from the customer’s account from 2004-2014.  . See this for more details.
  • Eduardo Diaz-Ocean Springs, MS. In June 2016, Diaz, who pleaded guilty to wire fraud,  was sentenced to 70 months, fined $15,000 and ordered to pay restitution of over $640,000 to his victims which include a 70 year old widow.
  • James McGilvrey-San Antonio, TX-Charged with Theft from The Elderly, sentenced to 20 years in state prison, fined $10,000 and ordered to pay over $1.9 million in restitution. See this for more detail.
  • Douglas P. Simanski-Altoona, PA-In June 2016, Simanski, without admitting or denying the findings, consented to a permanent bar from the securities industry and entry of findings that he failed to provide documents and information related to an investigation into allegations related to the conversion of funds. FINRA Case 2016049621301.
  • Gwendolyn M. Berry , of Dallas, TX, was associated with NEXT Financial group from 2009-2015 as a non-registered fingerprint person working as a non-registered assistant and bookkeeper for a Series & General Securities Representative and Series 24 General Securities Principal. After initiating an investigation into Berry regarding possible misappropriation and mismanagement of customer assets, FINRA repeatedly requested that Berry produce documents and information. Berry failed to produce the documents and information and was barred from association with any FINRA regulated broker-dealer in any capacity in April 2016. FINRA AWC No. 2015047059701.  

The official FINRA regulatory records for NEXT Financial Group disclose 19 prior regulatory events including a recent $750,000 fine by FINRA for supervisory failures. See this for details.

If you have information you believe would be helpful to our investigation please contact us. If you have an account with NEXT Financial Group that you believe has been mishandled, contact us to learn how you may be able to recover damages through FINRA arbitration.

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

 

Investigation of NEXT Financial Group Brokers Alleged to Have Converted Customer Funds-West Palm Beach, FL

May 2017-West Palm Beach, FL

In connection with a currently pending lawsuit, we are investigating thefts from customer accounts by brokers who were affiliated with NEXT Financial Group, a FINRA registered broker dealer headquartered in Houston, Texas.

Publicly available records disclose that the following four former brokers employed by NEXT Financial  have allegedly converted customer funds:

  • Tye Williams-Frisco, TX . See this for more details.
  • Eduardo Diaz-Ocean Springs, MS. In June 2016, Diaz, who pleaded to wire fraud,  was sentenced to 70 months, fined $15,000 and ordered to pay restitution of over $640,000 to his victims which include a 70 year old widow. See this for more detail. 
  • James McGilvrey-San Antonio, TX-Charged with Theft from The Elderly, sentenced to 20 years in state prison, fined $10,000 and ordered to pay over $1.9 million in restitution. See this for more detail.
  • Douglas P. Simanski-Altoona, PA-In June 2016, Simanski, without admitting or denying the findings, consented to a permanent bar from the securities industry and entry of findings that he failed to provide documents and information related to an investigation into allegations related to the conversion of funds. FINRA Case 2016049621301.

Gwendolyn M. Berry , of Dallas, TX, was associated with NEXT Financial group from 2009-2015 as a non-registered fingerprint person working as a non-registered assistant and bookkeeper for a Series & General Securities Representative and Series 24 General Securities Principal. After initiating an investigation into Berry regarding possible misappropriation and mismanagement of customer assets, FINRA repeatedly requested that Berry produce documents and information. Berry failed to produce the documents and information and was barred from association with any FINRA regulated broker-dealer in any capacity in April 2016. FINRA AWC No. 2015047059701.  

If you have information you believe would be helpful to our investigation please contact us.

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

Douglas P. Simanski-Former NEXT Financial Group Broker-Discharged for Theft

Altoona, PA

UPDATE MAY 2017-The FINRA records of former NEXT Financial Group broker Douglas Simanski currently disclose 13 pending customer disputes and 3 customer disputes that are final. The newly filed customer disputes include:

  • FINRA arbitration 17-0648 in which a customer of NEXT seeks damages of $50,000  and alleges they were sold a tax free investment with a guaranteed 10% yield compounded annually which they later deemed to be fraudulent.
  • FINRA arbitration 17-0610 in which a customer of NEXT seeks damages of $225,000 and alleges Simanski sold them $100,000 investment in a coal company which he told them would earn $5,000 per year for five years and then they would get investment returned. They subsequently were convinced to invest another $125,000. Customer now believes all the investment is lost.

UPDATE JANUARY 2017– FINRA records disclose that a number of additional arbitrations have been filed by customers of Douglas Simanski, a former broker with NEXT Financial Group, including:

  • Case 16-03447 in which a customer alleges damages of $231,665 and further alleges that funds provided to Simanski for investment were diverted to his personal account.
  • Case 16-03541 in which a customer alleges damages of $102,127 related to a purported investment in Pennsylvania Tax Free Investment Fund which would supposedly generate tax free income of 3-5%. The customer alleges that the investment was non existant and believes that Simanski converted the funds for his personal benefit.

ORIGINAL POST -August 2016-

The FINRA records of  Douglas P. Simanski,  a  former stockbroker who most recently worked for NEXT Financial Group  disclose a recent regulatory matter resulting in his permanent bar from the industry, 4 currently pending customer disputes, 1 prior final customer dispute and a recent  employment separation after allegations.

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 June 2016, Simanski, without admitting or denying the findings, consented to a permanent bar from the securities industry and entry of findings that he failed to provide documents and information related to an investigation into allegations related to the conversion of funds. FINRA Case 2016049621301.

The currently pending customer disputes include:

  • A complaint received July 2016 by a customer of NEXT Financial who alleges damages of $125,581 as a result of Simanski investing her in a high risk variable annuity.
  • FINRA Case#16-02258 in which a customer of NEXT Financial alleges damages of $100,000 on behalf of her deceased father who gave Simanski a check for $140,000 in October 2014 and received a signed five fixed investment note.
  • FINRA Case#16-2118 in which a customer of NEXT Financial alleges damages of $104,000 stating the in 2009 they invested $200,000 in a promissory note that was supposed to yield 6% tax free return. They state that Simanski sold fraudulent and unregistered securities.
  • A complaint received June 2016 from a customer of NEXT Financial alleging damages of $80,000 on a “special project” investment Simanski persuaded them to invest in.

In May 2016 Simanski was discharged by NEXT Financial Group who made the following allegation on Simanski’s FINRA record: “RR sold fictitious investments and converted the funds for his own personal use and benefit.”

Simanski was registered with NEXT Financial Group from 8/1999-6/2016. Prior to that he was registered with Advantage Capital Corp. 

If you lost money in an account handled by Douglas P. Simanski, you may be entitled to damages from his former 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