Tag Archives: next financial group lawsuit

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

Erryn Barkett-Former LPL Financial Broker-Discloses Pending Customer Suits-The Woodlands, TX/Fincastle, VA

February 2018-The Woodlands, TX -Fincastle, VA

According to publicly available records Erryn Michael Barkett , (CRD# 4102279) ,  a  currently unregistered stockbroker who was last employed by LPL Financial, disclose a recent regulatory sanction, 2 pending customer disputes, 3 prior customer disputes and 6 financial disclosures.

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 2/2016, Barkett was sanctioned by the Virginia State Corporation Commission who alleged the sale of  unsuitable and unregistered securities and the omission of  material information in the sale of those securities causing investors to lose $330,000. Barkett was ordered to pay restitution of $15,000 by the Virginia regulators.

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 Voyager Financial Group.

In pending FINRA Case 17-0132  customers of NEXT Financial Group are seeking damages of $310,000 and allege 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.

In a case pending in Botetourt County Circuit Court in Fincastle, VA, a customer of NEXT Financial Group has filed an action seeking damages of $78,000 alleging that Barkett sold unregistered securities in a military pension product that were not suitable.

Barkett was employed by NEXT Financial Group 3/2008-1/2013 and with LPL Financial 1/2013-8/2017.

If you have questions about an account handled by Erryn Michael Barkett, contact us to learn how damages may be recoverable 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

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

Tye Williams-Former NEXT Financial Broker-Subject of $1M Customer Dispute-Frisco, TX

UPDATE OCTOBER 2017– Frisco, TX

Former NEXT Financial Group stockbroker, Tye Williams was barred from the securities industry by FINRA for failing to cooperate with regulatory investigation alleging theft of $1M, making unsuitable recommendations and mismanaging accounts. FINRA Case 2015047059702. See this for more details. 

FINRA records report that NEXT Financial Group stockbroker Tye Williams , of Frisco, TX,  has been named in Case 2015-41457, pending in Harris County, Texas, alleging that from mid 2004 until 2015  Williams mismanaged the finances of a customer and exceeded the scope of his authority. Damages of $1 million are sought.

Williams FINRA record also discloses a pending FINRA arbitration (16-0609) filed by a customer of NEXT Financial that makes identical allegations as are made in the Harris County court case.

Williams was employed by NEXT Financial from 11/2008-8/2016. Williams discloses business affiliations with DC Rightside LLC which was formed to deal with the business activities following the sale of Smashburger, Tye Williams Financial Services, and One Source Advisors Group.

If you have losses in an account handled by Tye Williams, contact us to learn how you may be able to recover 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

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