Articles Tagged with NEXT Financial

shutterstock_157506896-300x300The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Richard Minichino (Minichino). According to BrokerCheck Records, Minichino has been subject to a pending customer dispute concerning roll-over annuities. In addition, Minichino has been subject to 4 tax liens and termination from employment at Next Financial Group, Inc. (Next Financial).

In April 2018, a customer alleged that Minichino unsuitably recommended the customer to roll over IRA annuities into other investments multiple times. The customer is requested $70,000 in damages. This dispute is currently still pending.

In February 2018, Minichino was terminated from Net Financial for trading customer’s accounts in an unsuitable manner that did not match with the investor’s needs or objectives.

shutterstock_63635611-300x200The securities attorneys at Gana Weinstein LLP are currently investigating NEXT Financial Group, Inc. (Next Financial) broker Stephen Dellelo (Dellelo).

According to BrokerCheck records, Dellelo is subject to one pending customer complaint concerning unsuitable placements in illiquid investments.

 

In November 2017, a customer alleged that from 2007 to 2017, Dellelo placed the customer into private and illiquid investments that were unsuitable to the customer and resulted in losses of $900,000. This dispute is currently still pending.

shutterstock_24531604According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Jerry McCutchen (McCutchen) has been the subject of at least 15 customer complaints and one judgment or lien. The customer complaints against McCutchen allege a number of securities law violations including that the broker made unsuitable investments, negligence, and misrepresentations among other claims.

The claims against McCutchen involve various investments including equipment leasing, non-traded real estate investment trusts (Non-Traded REITs), and variable annuities. We have written many times about the investing dangers of these products. One quality all of these investments have in common is the fact that they come with high commissions for the broker and low probability of success for the client. Our firm has written numerous times about investor losses in these programs such as equipment leasing programs like LEAF Equipment Leasing Income Funds I-IV and ICON Leasing Funds Eleven and Twelve. The costs and fees associated with all of these investments cause the security to be so costly that significant returns are virtual impossibility. Yet, investors are in no way compensated for the additional risks of these products.

In a typical equipment leasing program upfront fees are around 20-25% of investor’s capital. As for Non-Traded REITs, it was reported in the Wall Street Journal, that a study on “Nontraded REITs are costing investors, especially elderly, retired, unsophisticated investors, billions. They’re suffering illiquidity and ignorance, and earning much less than what they ought to be earning.” In conclusion, “No brokerage should be allowed to sell these things.”

shutterstock_186772637The Financial Industry Regulatory Authority (FINRA) recently barred broker Josh Abernathy (Abernathy) due to Abernathy’s refusal to respond to requests made by the agency. In addition, the U.S. Attorney for the Eastern District of Virginia charged Abernathy with mail fraud and conducting unlawful monetary transactions. The complaint alleges that Abernathy stole $1.3 million from at least 14 victims located throughout Virginia and Texas. In order to carry out the alleged fraud scheme, Abernathy created an entity called Omega Investment Group (Omega).

ln 2000, Abernathy first became registeredarrow-10x10 with a FINRA firm. From March 2007 until September 2012, Abernathy was associated with NEXT Financial Group, Inc (NEXT Financial). Thereafter, from February 2013 through August 2014, Abernathy was associated with The O.N. Equity Sales Company (ONESCO).

According to the complaint Abernathy told investors and clients that there the investments would generate guaranteed returns of between 10 to 20 percent. Abernathy’s victims included widows, single mothers, and church friends. In reality, instead of making legitimate investments, Abernathy used investor funds for his own personal trading accountarrow-10x10 through E*Trade, where he lost the funds, or used for the money to fund personal expenses. Abernathy’s pitch allegedly was that investor money would be placed in certain options, puts, and calls through Omega. Abernathy also allegedly sent fake quarterly statements to the investors which he altered in order to show investment profits that did not actually exist.