NEXT FINANCIAL GROUP was fined a total of $385,000 in late 2019 for sales practice issues and supervision failures related to non-traded REIT sales. In two states, the Massachusetts securities regulators as well as New Hampshire state securities regulators collectively leveled fines totaling $385,000 against NEXT FINANCIAL GROUP, while also ordering restitution to some.
According to the Financial Regulatory Authority (FINRA) Brokercheck report for NEXT FINANCIAL GROUP, there are 29 total disclosures, 23 of which involve regulatory disclosure issues. Late in 2019, the New Hampshire state securities regulators fined NEXT FINANCIAL GROUP $235,000, and the Massachusetts state securities regulators fined NEXT FINANCIAL GROUP $150,000 for sales and supervision issues related to non-traded real estate investment trust (REIT) products.
Atria Wealth Solutions (which also owns Cadaret Grant & Co., Inc., CUSO Financial Services, L.P., and other firms as well), completed its acquisition of NEXT FINANCIAL GROUP in June 2019. NEXT FINANCIAL GROUP has a history of state and federal regulatory and customer dispute issues. NEXT FINANCIAL GROUP is based in Houston, TX. and has 538 financial advisors nationwide, handling 16,000 customer accounts with nearly $2.4 billion in assets under management according to Brightscope.
For investors who have suffered losses in non-traded REITs, these are often the types of claims where the attorneys at Haselkorn & Thibaut, P.A. can be of great assistance to investors. The issues often come down to sales practice issues and supervision issues in terms of the product recommendations, the sale transactions, or the overall investment strategy that is recommended by the financial advisor without proper risk disclosures.
If with the assistance of experienced investment fraud lawyers, those issues are indicative of sales practice and/or supervision issues, investors may be able to recover their investment losses.
What are Non-Traded REITs?
Non-traded Real Estate Investment Trust (REIT) are generally considered high-risk investments, especially when the investment recommendations involve conservative investors, lower-risk income investors, such as seniors, near-retirees, and retirees. A recent FINRA case noted disclosure documents that were presumably available to firms like NEXT FINANCIAL GROUP as well as the financial advisors making the recommendations reflect that the investment product may not be suitable. Especially in cases where investors may require liquidity, guaranteed income, or cannot afford a complete loss of their investment, these speculative, often high-risk investments should not be presented by financial advisors as retirement savings vehicles or relatively conservative income-producing investments.
Examples include Northstar Healthcare and similar securities.
Unsuspecting investors are often surprised to learn the investments are illiquid, the income streams are not like interest or dividends on stocks or bonds, and their investment capital appears to be evaporating.
Potential FINRA Customer Claims Against NEXT Financial Group
Non-traded REITs such as Northstar Healthcare are private placement alternative investments sometimes recommended or sold based upon the promised income stream, or based upon incomplete, inaccurate (and sometimes non-existent) risk disclosures to investors. Some investors do not realize the material risks involved in the product, the underlying investment, or the possibility that their distributions could be substantially decreased or even stopped.
What Can NEXT FINANCIAL GROUP Investors Do If They Purchased Non-Traded REIT Investments?
– They Can Seek Compensation for Their Investment Losses!
If you are an investor that purchased Northstar Healthcare or other non-traded REITs or non-traded BDC investments from NEXT FINANCIAL GROUP and you have incurred losses you should consider your options for recovering your investment losses.
Experienced investor attorneys at Haselkorn & Thibaut, P.A. are available for a free consultation as a public service. Call today for more information at 1-800-856-3352 or visit our website and email us at www.investmentfraudlawyers.com.