{"id":4622,"date":"2008-06-18T16:01:47","date_gmt":"2008-06-18T16:01:47","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2008\/06\/sec_judge_slaps_next_financial"},"modified":"2022-03-29T15:12:48","modified_gmt":"2022-03-29T20:12:48","slug":"sec-judge-slaps-next-financial","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-judge-slaps-next-financial\/","title":{"rendered":"SEC Judge Slaps Next Financial Group With $125,000 Fine Over Recruiting Practices"},"content":{"rendered":"

Securities and Exchange Commission Administrative Law Judge James T. Kelly is ordering Next Financial Group Inc. to cease and desist from recruiting practices that violate privacy laws. He also has slapped the company with a $125,000 penalty.<\/p>\n

Recruiting practices that need to stop included those involving use of clients’ private information. Next has been known to ask recruits to provide their user id and password so that the firm could enter the computer systems of the recruits’ brokerage firms and collect clients’ non-public personal information.<\/p>\n

The SEC had originally requested that the judge impose a $325,000 on Next. Judge Kelly, however, acknowledged that there is general confusion within the securities industry about Regulation S-P, which implements stricter privacy laws under the Gramm-Leach-Bliley Act of 2000. However, even Next’s expert witnesses agreed that using the passwords and user ID’s of recruits in this way is not in line with normal industry practices.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Securities and Exchange Commission Administrative Law Judge James T. Kelly is ordering Next Financial Group Inc. to cease and desist from recruiting practices that violate privacy laws. He also has slapped the company with a $125,000 penalty. Recruiting practices that need to stop included those involving use of clients’ private information. Next has been known […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3774,3752,3873],"tags":[],"class_list":["post-4622","post","type-post","status-publish","format-standard","hentry","category-broker-dealers","category-financial-firms","category-next-financial"],"yoast_head":"\nSEC Judge Slaps Next Financial Group With $125,000 Fine Over Recruiting Practices — Investor Lawyers Blog — June 18, 2008<\/title>\n<meta name=\"description\" content=\"Securities and Exchange Commission Administrative Law Judge James T. 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