Mar 8, 2022
DID DOUGLAS P. SIMANSKI CAUSE YOU INVESTMENT LOSSES? Douglas Simanski Formerly With NEXT Financial Group Has 24 Customer Complaints For Alleged Broker Misconduct Who is Douglas Simanski formerly with NEXT Financial Group? Douglas Simanski (CRD #2606998) who was formerly registered with NEXT Financial Group and located in Altoona, Pennsylvania is a subject of one of our many securities industry sales practice abuse investigations. Douglas Simanski has also been the subject of multiple regulatory investigations, including, investigations by United States Securities and Exchange Commission, and FINRA. He entered into a consent agreement to a permanent bar, without admitting or denying the allegations, that he engaged in a scheme to defraud his clients by making material misrepresentations to induce his clients to send money to him personally to invest in companies that he claimed to own and operate. However, Douglas Simanski allegedly did not invest the money as promised and instead use the money to pay other investors and for his personal expenses. Douglas Simanski Customer Complaints Douglas Simanski has been the subject of 24 customer complaints that we know about. Twenty-one of Douglas Simanski’s 24 customer complaints were settled in favor of investors. Two of Douglas Simanski’s customers’ complaints were denied and, to date, the customers have not taken any further action. There is currently one pending customer complaint filed against NEXT Financial Group for investment losses caused by Douglas Simanski’s alleged misconduct. Allegations Against Douglas Simanski A sample of the allegations made in the FINRA reported arbitration claim settlements and/or pending complaints for investment losses are as follows: Claimant alleged Douglas Simanski importuned them to loan $175,000 to Payless Rent a Car, which reputedly paid 5% interest, payable at the end of the year. Claimants believed the representative took the funds for his own use. Claimants alleged that through Douglas Simanski they were sold a tax-free investment with a guaranteed 10% yield compounded annually, which they later deemed to be fraudulent. Client sent a letter after being contacted by the firm confirming that client invested $40,000 in a 5-year, 5% interest investment allegedly through Douglas Simanski. The investment was an unapproved activity conducted by registered representative away from the firm. Client sent a letter after being contacted by the firm, confirming that client invested $50,000 in an investment with a 10% tax free return. The investment was an unapproved activity allegedly conducted by Douglas Simanski away from the firm. Customer alleged Douglas Simanski convinced her to purchase a Pennsylvania Tax Free Investment Fund, which supposedly would generate tax-free income of between 3% and 5%. Customer invested $130,000 in the Pennsylvania Tax Free Investment Fund, which was non-existent and believed representative converted or otherwise used the proceeds from customer’s investment for representative’s personal benefit. Customer alleged Douglas Simanski invested her in a high risk variable annuity which was unsuitable and failed to disclose the extensive rider fees associated with the investment. Customer alleged $231,665 was provided to Douglas Simanski to be placed in appropriate investment vehicles. Customer believed registered representative unlawfully diverted the funds to an account in the name of registered representative and said funds were used for registered representative’s own personal gain and funds have been depleted. Customer alleged he invested $890,000 in a 10% “tax-free” fixed income security or bond which would pay interest annually and have a maturity date of two years. Customer believed this investment was non-existent and Douglas Simanski converted funds to his personal benefit. Customer alleged that Douglas Simanski recommended customer invest $120,000 was invested in a “CD” for 36 months at 1.7% interest. The funds were misappropriated. Customer alleged Douglas Simanski recommended a $100,000 new investment in a purported coal company. Representative promised they would earn $5,000 annual interest for five years, which could be taken as cash or reinvested and customers could get their money out after a five year period. Representative recommended customer invest another $175,000 into the purported coal company based on the same terms as before. Customer believed all investments in the purported coal company were lost. Customer alleged Douglas Simanski made fraudulent recommendations, false promises of guaranteed returns, affirmative misrepresentations, and omissions by convincing customer to “invest” 3.45 million in a Black Diamond Mine project. Customer alleged Douglas Simanski importuned customer to purchase a $200,000 note from Payless Rent a Car which reputedly paid 5% interest. Customer paid representative by personal check, the note was for 5 years, with interest to be paid annually. Customer expected to receive interest of $10,000 but no payment was ever received. Customer believed representative may have taken all funds to his own or his family’s use. Customer alleged a check for $100,000 was given to Douglas Simanski which was to be invested in the Black Diamond Mining Company. This investment offered a 5 year, 5% secured or guaranteed note to investors. Customer believed this note was non-existent and representative converted or otherwise used the proceeds from investment for his personal use. Customer alleged Douglas Simanski persuaded them to invest $80,000 into a special project and funds were misappropriated. Customer alleged Douglas Simanski recommended they take money out of their annuity and invest it in a safe, tax-free investment for a five year period that would earn $5,000 annual interest which could be taken as cash or reinvested. Money was withdrawn from an annuity, incurred $6,000 in taxes and customers wrote a check for $104,000 to “E*Trade.” Customers believed all investments in this account were lost. Customer alleged that she wrote a $100,000 check to E*Trade for an investment with Douglas Simanski and she was recently advised that the invested amount no longer exists. Customer’s attorney alleged devastating financial losses that came about as the result of the conduct of registered representative. Client invested in various tax free investments allegedly through Douglas Simanski. The investments were an unapproved activity conducted by registered representative away from the Firm. Customer’s attorney alleged devastating financial losses that came about as the result of the conduct of Douglas Simanski. Client wrote checks to registered representative for certain...
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