Former Next Financial Group, Inc. broker Charles Kulch (CRD# 2371584) is being investigated for over-concentrating customer investments in illiquid, risky and high-commission products. Kulch was registered with Next Financial Group, Inc. in Nashua, New Hampshire from 2006 to June 2020.
In July 2020, the Massachusetts Securities Division opened an investigation into Kulch alleging, “Kulch over-concentrated customers in illiquid, risky, and high commission products, including non-traded real estate investment trusts and variable annuities. When filing disclosure forms required by his firm, Kulch filed multiple forms simultaneously, and failed to account for the effect of each transaction on subsequent forms.”
In December 2011, New Hampshire opened an investigation into Kulcha alleging, “Charles Kulch failed to reasonably supervise the dissemination of seminar invitations containing inaccurate information.” Kulch was sanctioned to a $140,000 civil and administrative penalty and fine.”
Kulch has been the subject of six customer complaints between 2002 and 2016, two of which were denied, according to his CRD report. More recent complaints are regarding:
- June 2016. “Poor performance.” The customer is seeking $120,000 in damages and the case is currently pending.
- April 2015. “Customer alleges that in 2007-2008 representative’s recommendation to invest most of his net worth in numerous high risk, speculative, illiquid private placements and tenant-in-common interests was unsuitable.” The customer sought $499,000 in damages and the case was settled for $150,000.
- April 2015. “Unsuitability, breach of fiduciary duty, common law fraud, and violation of the New Hampshire Securities Act.” The case was settled for $4 million.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Next Financial Group, Inc. may be liable for investment or other losses suffered by Kulch’s customers.
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