Erez Law is currently investigating Next Financial Group, Inc. financial advisor Dion Rey Padilla (CRD# 4432230) regarding misrepresentations regarding the sale of variable annuities. Padilla was registered with Next Financial Group, Inc. San Antonio, Texas from 2006 to 2017.
FINRA suspended Padilla for 15 months from March 2017 to June 2018 and sanctioned him $10,000 in civil and administrative penalties and fines following allegations that he “effected unauthorized purchases of a variable annuity for a customer of his member firm and concealed this information from the customer for over nine months through repeated misrepresentations that he had not invested the customer’s funds into a variable annuity.” The FINRA complaint alleges that Padilla knowingly, willfully or recklessly made misrepresentations of material fact in connection with the sale of the variable annuity to the customer.” Padilla also “caused the customer to invest an additional $558,889 into the variable annuity by falsely claiming that the investment purchased was not a variable annuity,” in addition to the customer’s initial investment of $220,787.
Padilla has been the subject of three customer complaints between 2014 and 2017, according to his CRD report:
- March 2017. “Customer alleges she purchased a variable annuity in August 2007 and registered representative misrepresented the monthly distributions, benefits or advantages of the policy and dividends to be received on the policy.” The customer is seeking $970,577.55 in damages and the case is currently pending.
- April 2016. “Customer alleges that in April 2007, registered representative failed to include a principal protection for life rider in connection with a recommended variable annuity investment.” The customer sought $342,000 in damages and the case was settled for $175,000.
- February 2014. “Alleged to have executed an unauthorized trade.” The customer sought $62,617.30 in damages and the case was settled for $69,400.73.
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 Padilla’s customers.
Erez Law represents investors in the United States for claims against Next Financial Group, Inc. financial advisor Dion Rey Padilla, who is alleged to make misrepresentations regarding the sale of variable annuities. If you were a client of Next Financial Group, Inc. financial advisor Dion Rey Padilla or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form below for a free consultation.
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