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Broker Complaints: NEXT Financial Group, Inc. (CRD# 46214)

NEXT Financial Group, Inc. has a history of customer and regulatory complaints. NEXT Financial Group, Inc. is a licensed broker-dealer registered with FINRA, or the Financial Industry Regulatory Authority. NEXT Financial Group, Inc. is based in Houston Texas and has been a FINRA member since 1999. The firm currently has approximately 900 registered persons and 590 branch locations.

Complaints against NEXT Financial Group, Inc. are governed by FINRA, or the Financial Industry Regulatory Authority. As a FINRA member firm, NEXT Financial Group, Inc. must arbitrate all customer initiated complaints before FINRA. We exclusively handle FINRA arbitrations for investors. We are investigating complaints against NEXT Financial Group, Inc. and are interested in hearing from aggrieved investors regarding their investment losses.

NEXT Financial Group, Inc. has been the subject of many regulatory complaints. According to FINRA, NEXT Financial Group, Inc. has 13 disclosed regulatory events on its securities license. These events may include complaints by FINRA, the Securities and Exchange Commission and individual state securities regulators. Here are some notable complaints against the NEXT Financial Group:

  • In May 2008, FINRA fined NEXT Financial Group for reporting violations. NEXT Financial Group is obligated to update FINRA when certain material adverse events occur at the firm, including customer complaints and the termination of brokers. According to the 2008 FINRA complaint, NEXT Financial failed to keep FINRA apprised of new complaints and adverse events.

  • In November 2010, FINRA fined NEXT Financial Group $400,000 for complaints related to the firm’s failure to maintain a reasonable system for reviewing excessive trading. The FINRA complaint against NEXT Financial Group also required the firm to pay over $100,000 in restitution to customers.

  • In November 2011, NEXT Financial Group, Inc. was ordered to pay $2 million in restitution for complaints related to the sale of high risk private placements called Provident Royalties, which ultimately failed. In addition to the fine and restitution, NEXT Financial Group, Inc. owner and chief compliance officer were suspended by FINRA, which is an extraordinary penalty. FINRA also found that NEXT Financial Group, Inc. mischaracterized material facts concerning the offering of this product to its customers.

  • In May 2014, FINRA fined NEXT Financial Group $88,000 for failing to establish an adequate supervisory system for its brokers. Such a system is critical to ensure the well-being of customers and to prevent broker misconduct. The May 2014 complaint was not an isolated incident and was part of a larger patter of complaints against NEXT Financial Group related to its inadequate supervisory system.

In addition to these regulatory complaints, brokers at NEXT Financial Group, Inc. have been the subject of many customer initiated complaints. These complaints have alleged, among other things that the firm and its brokers engaged in securities fraud, churning or the recommendation of unsuitable investments.

Our law firm exclusively represents investors who have lost money at firms such as NEXT Financial Group, Inc. We prosecute cases on a contingency basis and we will not get paid unless our clients recover money. If you or someone you know suffered losses with NEXT Financial Group, Inc. please contact us today. Our attorneys will evaluate your complaint against NEXT Financial Group, Inc. for free. Do not delay.