NEXT Financial Group is an independent broker-dealer providing investment services focused on retirees and baby boomers. NEXT Financial, operating as a subsidiary of NEXT Financial Holdings, Inc., is entirely owned and managed by its representatives and employees. Founded in 1998, NEXT Financial is headquartered in Houston, TX. In 2009, the company was fined $1 million by FINRA for its failure to properly supervise a number of client accounts and over 100 branch managers.
In the last two years, NEXT Financial has been burdened with large fines by the Financial Regulatory Authority (FINRA) for various reasons, all of which should seem problematic to a potential or current investor. In 2013, for example, they were fined $250,000 for failing to retain/monitor correspondence between brokers and investors. Email retention is vital for accountability purposes; as most interaction between representatives and clients is electronic, emails are often the clearest and strongest way that firms and regulatory bodies can oversee and investigate fraudulent or negligent transactions and habits.
In 2014, two separate disciplinary fines were levied against NEXT Financial. One fine amounted to $88,000 for failing to supervise brokers effectively. The second fine, which amounted to $265,000, was for trading agency securities at “unfair or unreasonable” prices. At its heart, this was a fine for being dishonest. In addition to the punitive fine, FINRA required NEXT to pay $177,000 to the investor they had defrauded.
As a FINRA-licensed firm, NEXT Financial Group has a legal obligation to supervise their brokers and provide transparent, accurate records of their activities. Both of these measures are necessary for a healthy, equitable financial industry. If an unethical broker is unsupervised, they will eventually cause their clients significant losses. For this reason, FINRA has made NEXT Financial legally liable for any damages caused by their brokers. That means you have the right to file a claim against NEXT Financial for the negligence of their representatives, even if that representative no longer works for NEXT Financial Group.
Meyer Wilson investment fraud attorneys have the experience and skill to help you reclaim your financial assets. We recovered $350 million for our clients. No matter the size or history of the investment firm, we can make sure your voice is heard in court, arbitration, or negotiation of any kind. While FINRA allows you the right to file claims against negligent firms, it’s our role as investment fraud lawyers to help you bring those claims to bear, recovering what is rightfully yours and bringing justice to negligent behavior.