Tag Archives: next financial group complaint

Joseph L. Cotter-Former NEXT Financial Group Broker-Discloses Fine/Suspension/Termination-Charlotte, N.Carolina

March 2018- Charlotte, N. Carolina

The FINRA records of  Joseph L. Cotter  ,  a  stockbroker who is currently not registered and who was last employed by  Petersen Investments disclose a recent regulatory matter resulting in his suspension, 2 prior customer disputes, a pending investigation 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 November 2017, to resolve allegations that he engaged in excessive trading and  unsuitable trading in a customer account, Cotter was suspended for 9 months (11/6/2017-8/5/2018) , ordered to pay disgorgement of $100,549 and assessed a fine of $15,000.

FINRA found that Cotter exercised de facto control over the account an unsophisticated lady client and used this control to excessively trade the account in a manner that was inconsistent with the her investment objectives, financial situation and needs. As a result the customer’s account lost nearly $400,000 and generated commissions of over $100,000. FINRA Case 220166049316301. 

Cotter’s FINRA record discloses that in April 2017 FINRA advised that they are forwarding examination 20160493163 to FINRA Enforcement.

In 1/2017, a customer of Cotter’s prior employer, NEXT Financial Group, was paid $328,646 to resolve allegations that Cotter mismanaged her account from 2013-2016.

Joseph L. Cotter  was discharged by NEXT Financial Group on 3/18/2016 for excessively trading a customer account. Cotter was employed by NEXT Financial 6/2008-3/2016.

NEXT FInancial Group made the  following allegation  on Cotter’s official FINRA record:“The firm conducted an internal review of the trading activity in a customer’s accounts and found the level of trading activity to be excessive in light of the customer’s profile and the character of the account.”

In May 2017 Cotter was allowed to “voluntarily resign” from   Petersen Investments who made the following allegation on his FINRA record:“On April 2017, FINRA notified Mr. Cotter that examination 20160493163 was being referred to its Enforcement Division for further review.”

If you have losses in an account handled by Joseph Cotter, contact us  for a no charge consultation to learn 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 Fined $750K by Securities Regulator-Houston, Texas

January 2018-Houston, Texas

Houston-based NEXT  Financial Group recently was sanctioned by FINRA for various deficiencies in its supervisory procedures over one of its brokers in FINRA  Letter of Acceptance Waiver and Consent No. 20155043319901. FINRA fined NEXT Financial Group $750,000, issued a censure and required NEXT to hire an Independent Consultant to conduct a comprehensive review of its supervisory system.

Those supervisory deficiencies include:

  • A failure to implement a system reasonably designed to detect excessive trading (“churning”).
  • NEXT’s systemic failures in the supervision of the sales of variable annuities (VA). The sale of variable annuities earned NEXT over $219 million, 27% of its revenues, from July 2012-April 2014.
  • Failures in supervising the preparation and dissemination of consolidated reports from brokers to customers which allowed brokers to manually enter and value assets held away from the firm without providing supporting documentation to show the existence and value of the assets.
  • Misleading information on the company’s website and the omission of material facts relating to compensation received by NEXT from financial partners supplying investment products to NEXT.

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 official records for NEXT Financial Group maintained on the FINRA website disclose that NEXT has been the subject of 19 prior regulatory events.

Several NEXT Financial Group brokers have been accused of converting customer funds in recent years. See this for more detail on NEXT Financial Group brokers alleged to have wrongfully taken funds from customer accounts.

 

Customers of NEXT Financial Group who have questions about how their account has been handled should  contact us to discuss your legal options. If you have suffered losses in your account, 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

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

Erryn Michael Barkett-Former NEXT FInancial Broker-Discloses Sanctions and Customer Disputes Over Unregistered Securities-The Woodlands, TX

February 2017-The Woodlands, TX and Fincastle, VA

According to publicly available records Erryn Michael Barkett , (CRD# 4102279) ,  a  stockbroker who is employed by LPL Financial, disclose that he was sanctioned by the Virginia State Corporation Commission who alleged that he sold unsuitable and unregistered securities and omitted material information in the sale of those securities causing investors to lose $330,000.

Barkett was ordered to pay restitution of $15,000.

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.

Public records disclose that  Barkett’s prior employer  NEXT Financial Group paid over $310,000 to settle the claims of four customers who alleged that Barkett sold them fraudulent unregistered products involving structured military pension investments.

In pending FINRA Case 17-0132 a customer of NEXT Financial Group is seeking damages of $310,000 and alleges that between 2009 and 2013 Barkett recommended that they invest in various fraudulent companies and recommended nearly $650,000 in illiquid and poor performing alternative investments, REITs and annuities.

If you have questions about an account in an account handled by Erryn Michael Barkett, 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

Tye Williams-Former NEXT Financial Broker- Barred From Securities Industry-Frisco, TX

September 2016-Frisco, Texas

Tye Williams, a stockbroker who formerly worked for NEXT Financial Group was barred by the Financial Industry Regulatory Authority (FINRA) from acting as a broker or otherwise associating with firms that sell securities to the public.

Williams entered into a Letter of Acceptance Waiver and Consent (AWC) without admitting or denying the findings made by FINRA in disciplinary case #2015047059702.

FINRA initiated an investigation into Williams regarding a customer complaint that he had converted over $1 million from the customer’s accounts from 2004-2014, had made unsuitable investment recommendations, engaged in unauthorized transactions and mismanaged the customer assets. FINRA repeatedly requested , pursuant to FINRA Rule 8210, that WIlliams produce documents and information, however Williams failed to produce the requested information and documents, according to the FINRA AWC.

FINRA records indicate that Williams was employed by NEXT Financial from 11/2008-8/2016. Prior to that he was employed by First Heartland Capital and before that Mutual Service Corporation.

He operated Tye Williams Financial Services and One Source Advisors Group in Frisco, TX.

If you have losses in an account handled by Tye Williams, a broker who formerly worked for NEXT Financial, call for a no charge consultation to learn your options for recovering damages.

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