Tag Archives: next financial group litigation

Joeann Walker-Former LPL Financial Broker-Sanctioned Over Annuity Sales-Brockton, MA

December 2017-Brockton, MA

According to FINRA  records Joeann M. Walker, (CRD# 2210194) ,  a   stockbroker who formerly worked for NEXT Financial Group and LPL FInancial  was barred from the securities industry for failing to cooperate with a regulatory investigation.

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.

According to FINRA Letter of Acceptance Waiver and Consent #2016049354501 , FINRA requested financial records and other documents from Walker in connection with an inquiry into the unsuitable sales of variable annuities to one of Walker’s clients. While Walker did provide some documents to FINRA , and  acknowledged that her response was incomplete, she refused to cooperate fully, resulting in a bar from the securities industry.

In 11/2016 a customer of NEXT Financial Group and LPL Financial alleged unauthorized sales of stocks, unauthorized and unsuitable purchases of variable annuities and unauthorized mutual fund switches. That matter was settled for $175,000, with Walker contributing $50,000 toward the settlement.

 

 

Walker was employed by LPL Financial from 8/2006-4/2015 and by NEXT Financial Group from 4/2015-11/2017.

If you have questions about an account handled by Joeann M. Walker, 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

Tye C. Williams-Former NEXT Financial Group Broker-Named in $1M Customer Dispute-Frisco, TX

September 2017 – Frisco, Texas

According to publicly available records  Tye C. Williams (CRD#1271046) , a former stockbroker  who was most recently employed by NEXT Financial Group , disclose  a regulatory event that resulted in his bar from the securities industry and 2 pending 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.

Williams was employed by NEXT Financial Group from 11/2008-8/2016.

Without admitting or denying the findings, WIlliams consented to a permanent bar from the securities industry and to the entry of findings that he failed to produce documents and information related to an investigation regarding a customer complaint alleging that Williams converted over $1 million from customer’s accounts, made unsuitable recommendations and engaged in unauthorized transactions. FINRA Case 2015047059702. 

In pending FINRA arbitration 16-0609 a customer of NEXT Financial Group seeks damages of $1 million and alleges that from 2004-2015 Williams mismanaged their finances by exceeding the scope of his authority and recommended unsuitable investments in ventures like “Smashburger”.

If you have questions about an account handled by Tye C. Williams, call to speak with an experienced securities attorney.

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.

International 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

DECEMBER 2017-FINRA Arbitration claim filed vs. McNally Financial Services by South Texas individuals alleging mismanagement of their retirement accounts by Mark Kemp. See this for more. 

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

Dion Padilla Investigation-NEXT Financial Group-San Antonio, TX

San Antonio, Texas

JUNE 2017 UPDATE-In May 2017 a customer of NEXT Financial Group alleged 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 $375,704.

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 no longer pending.

ORIGINAL POST-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 $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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

NEXT Financial Group Settles Tenant in Common Case

October 2016

Next Financial Group, Inc. , a stock brokerage firm headquartered in Houston, Texas, 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 relation to recommendations that an investor purchase tenant in common (TIC) private placement investments. Tokena Corporation v NEXT Financial Group, FINRA Case 15-0762. 

In May 2016 that matter was settled for an undisclosed amount. Following the settlement, Charles Kulch a stock broker who has been registered with NEXT Financial since 10/2006, requested that the FINRA arbitration panel expunge his FINRA record of any reference to the customer dispute. The arbitration panel denied Kulch’s request for expungement.

According to his FINRA record, Charles Kulch of Nashua, New Hampshire, discloses 5 prior customer disputes and 4 prior regulatory events.  His prior customer disputes include a matter recently settled in May 2016 for $120,000. In that case a customer of Kulch’s prior employer Investors Capital Corp. alleged damages for poor performance in a real estate security.

If you have questions about losses in an account handled by Charles Kulch, 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

Dion R. Padilla-NEXT Financial Group Stockbroker-Investigation Update

February 2017 UPDATE- Dion Padilla/ AT&T Retirement Account investigation. See this for details.  

JUNE 2016 UPDATE-Padilla named in FINRA complaint for unauthorized purchase of variable annuity. See this link for more information.

San Antonio, Texas

According to FINRA records, Dion R. Padilla  a stock broker who has worked for NEXT Financial Group since 2/2006  discloses that a customer has filed an arbitration seeking damages of $347,000. Padilla also operates Padilla Wealth Management.

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.

The customer alleges that in April 2007 Padilla failed to include a principal protection for life rider in connection with a recommended variable annuity investment.

Padilla discloses that in 2014 a customer alleged that he executed an unauthorized trade involving a variable annuity. That matter was settled for $69,400.

In September 2015 FINRA initiated an investigation of Padilla for a potential violation of FINRA Rule 2010 for making an unauthorized purchase of a variable annuity and other violations related to misrepresentations and omissions. That matter is currently pending.

If you have questions about an account handled by Dion Padilla, 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