Texas securities firm fined $325G for improper transactions with N.H. clients

CONCORD - The New Hampshire Bureau of Securities Regulation today announced it has reached a settlement with NEXT Financial Group, Inc., a Texas-based broker-dealer and investment adviser, over allegations the firm authorized unsuitable recommendations of nontraded real estate investment trusts ("non-traded REITs") to 77 New Hampshire investors.

The Bureau contends that unsuitable investment recommendations were made between 2009 and 2016 and caused NEXT clients to hold an overconcentration of non-traded REITs or otherwise hold an unsuitable product. Factors contributing to these unsuitable recommendations related to exceeding NEXT's own investor portfolio concentration guidelines of non-traded REITs, failing to comply with investor-income thresholds for the purchase of such products, errors apparent on purchase-related documents, and unsuitable sales made to clients over the age of 80 years old.

NEXT agreed to pay $325,000 in fines and costs to the Bureau and agreed to offer remediation to all 77 New Hampshire investors.

The Bureau acknowledges the cooperation and assistance of the Massachusetts Securities Division during the investigation.

The Bureau of Securities Regulation is an agency of the Secretary of State charged with enforcing the securities laws and protecting investors. If you believe you or someone you know has been the victim of investment fraud or misconduct, please contact the New Hampshire Bureau of Securities Regulation at (603) 271-1463.