NEXT Financial Group Inc. Charged with Supervisory Failures in Connection with Structured Investment Products

Cleveland stockbroker fraud lawyerNEXT Financial Group Inc., a general securities broker-dealer headquartered in Houston, Texas, had a deficient supervisory system and written procedures related to structured products it offered and sold to its customers, according to charges by the Financial Industry Regulatory Authority.

The Peiffer Rosca law firm’s securities practice attorneys Alan Rosca and Joe Peiffer are investigating the matter.

NEXT Financial Group Inc. Has Had Previous Disciplinary Occurrences

NEXT retains approximately 900 registered persons and 590 registered branch locations and has been a FINRA registered member since June of 1999, according to a FINRA report.

NEXT retains a relevant FINRA disciplinary history, as specified in a FINRA report. In May of 2008, NEXT was censured and fined $10,000 in connection with late U4/U5 form and Rule 3070 filings. In November of 2010, NEXT was fined and censured $400,000 and had to pay $103,179.84 as well as interest in restitution to customers for allegedly failing to maintain an adequate system for reviewing excessive trading of its registered representatives’ transactions among other violations. In November of 2011, NEXT agreed to pay a $50,000 fine and $2 million in restitution for alleged suitability and supervisory violations.

NEXT Financial Inc. Violates Several FINRA Rules, According to the Regulators

NEXT was accused of being late in filing the necessary FINRA U4 and U5 forms, which disclose customer complaints, judgments, and/or liens, in a timely and accurate manner 22 separate times, as stated in a FINRA report. The periods of tardiness ranged from two weeks to over two years.

NEXT allegedly allowed its former General Counsel to supervise the firm’s Chief Compliance Officer of the Compliance Department without the required principal registration.

Between March of 2009 to August of 2012, NEXT offered and sold various structured products to retail customers while missing an established supervisory system devised to identify and preclude the unsuitable sales of such products. Their written procedures failed to provide adequate guidance on supervision or suitability regarding structured products and did not have a formal training program in place. All of these alleged actions of NEXT were in clear violation of different FINRA rules, as per a FINRA report.

Investor Right Attorneys Investigating NEXT Financial Group Inc.’s Alleged Misconduct

The Peiffer Rosca attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of any losses they may have suffered in connection with NEXT Financial Group Inc. structured products. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investments in structure products or investment-related misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.