Next Financial Group Fined by Massachusetts Securities Division over REIT Sales
Have you lost money investing in non-traded REITs with Next Financial Group? We are investigating allegations made by the Massachusetts Securities Division against Next Financial , a Houston, Texas-based brokerage firm.
Massachusetts alleged that a representative of Next sold a number of non-traded REITs (real estate investment trusts) to Massachusetts investors. Massachusetts also alleged that the REITs sold to these investors exceeded Next Financial Group’s guidelines, which provided that an investor could not invest more than a certain percentage of their net worth in the real estate investments. To settle these allegations, Next agreed to offer rescission on these REIT purchases, and Next also was ordered to pay a fine of $150,000.
Brokerage firms like Next Financial Group have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in Massachusetts and the Boston area in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including against Next Financial Group.