Articles Tagged with Next Financial

Doraine Refused To Cooperate In FINRA’s Investigation 

The Financial Industry Regulatory Authority (FINRA) has barred former Next Financial broker, Charles Doraine after he refused to give testimony in the self-regulatory organization’s (SRO’s) probe into allegations that he unsuitably recommended Puerto Rico bonds to customers. 

Already, Doraine has been the subject of investor claims accusing him of overconcentrating customer accounts with these municipal bonds and engaging in short-term trading. 

Next Financial Group Inc. will be purchased by Atria Solutions. The Houston-based independent broker-dealer is the fourth brokerage firm that Atria, which is located in Dallas, has acquired since 2017. The other brokerage firms are Cadaret Grant & Co., Cusco Financial Services, and Sorrento Pacific Financial.

Next Financial currently has almost 540 advisers and representatives and nearly $13B in assets under management. According to InvestmentNews, Under the Next Financial deal, Atria will acquire the broker-dealer and its related companies. Following the acquisition, Atria will work with almost 2,000 advisers with about $65B in assets under administration.

Next Financial’s BrokerCheck record shows 19 disclosure events that have been settled, usually without the firm admitting to or denying the findings, for various causes, including:

Douglas P. Simanski, a former Next Financial investment adviser and broker, has pleaded guilty to a $4.5M investor fraud for the criminal charges of wire fraud, securities fraud, and submitting false income tax returns. He is accused of bilking over 30 clients over a 14-year period.

According to the US Attorney’s Office for the Western District of Pennsylvania, between February 2002 and May 2016, Simanski “fraudulently obtained” about $4.5M from investors. He “fabricated” contracts for “Tax Free Investments” and “fake CDs” that came with a list of guaranteed return rates and payouts. The bogus documents were used to solicit investors.

Simanski went on to use some of the investors’ funds to issue returns to other investors to make it seem as if the “investments were legitimate.” He also used some of their money for personal spending and in his own E*Trade account. The former Next financial broker is accused of turning in income tax returns that were “false.”

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