Investors may still be able to recover their losses suffered while investing with Douglas Simanski, the former Next Financial Group broker who was fired in May 2016 for allegedly stealing from one of his clients. According to public records, from June 2016 through September 2017, his former clients filed twenty-one claims against him and / or Next Financial that resulted in significant recoveries to the clients.
Settlement amounts for the claims range between $25,000 to $440,000. Public records indicate Next Financial paid the settlements without any contributions from Simanski.
Many of the customers alleged Simanski recommended they invest in annuities, promissory notes, CDs, or other investments that turned out to be fraudulent and Simanski instead misappropriated the funds for his personal use.
Douglas Simanski entered the securities industry in 1995. He was registered as a General Securities Representative with Next Financial Group, Inc. from August 1999 through June 2016. During that time, he worked in Altoona, Pennsylvania. He is currently not associated with a securities firm.
The Financial Industry Regulatory Authority, Inc. (FINRA), the primary regulator of stock brokers and brokerage firms, publicly disclosed that it investigated whether Simanski stole funds from one of his clients. In June 2016, FINRA barred Simanski from the securities industry for failing to cooperate with the investigation.
Previously, Marquardt Law Office reported that Next Financial broker JoeAnn Walker (aka JoeAnn Mitchell) was barred by FINRA on December 12, 2017 for allegedly not cooperating with an investigation into her sales of variable annuities. FINRA records indicate JoeAnn Walker and Douglas Simanski were two of as many as 23 Next Financial brokers barred since 2008 for alleged misconduct occurring during their employment with Next Financial.[1]
Investor Recovery Options for Broker Theft and Fraud
Brokerage firms, like Next Financial, have a duty to closely monitor and supervise their brokers’ conduct. This includes pursuant to FINRA Rule 3110, which requires firms establish an adequate system to supervise their brokers. Such rules establish legal duties that brokerage firms owe to their customers. These duties give investors the right to pursue claims for losses caused by firms inadequately supervising broker misconduct.
If you have suffered losses with Douglas Simanski, contact Marquardt Law Office LLC to speak with a securities attorney and receive a free consultation.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.
[1] FINRA BrokerCheck reports that 19 of the 23 barred individuals were employed by Next Financial at the time activities occurred leading to the complaint initiating the case in which the individuals consented to being barred from associating with firms registered with FINRA (“FINRA Members”). BrokerCheck also indicates—based on the dates such as the dates of employment and FINRA bar—the other 4 individuals appear to have been employed by Next Financial at the time activities occurred leading to the complaint initiating the case in which the individuals consented to being barred from associating with FINRA Members.
