Investment Adviser Douglas Simanski – Next Financial – Altoona, Pennsylvania
Have you suffered losses investing with Douglas Simanski and Next Financial Group? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim.
According to a press announcement on November 5, 2018, the Securities and Exchange Commission charged Douglas Simanksi, a former investment adviser in Altoona, Pennsylvania, with violating antifraud provisions of the federal securities laws.
The SEC’s complaint alleges that Simanski raised over $3.9 million from approximately 27 of his brokerage customers and investment advisory clients, many of them retired or elderly. According to the complaint, Simanksi allegedly told them that he would “invest their money in either a “tax free” fixed rate investment, a rental car company, or one of two coal mining companies in which he claimed to have an ownership interest.”
Simanki allegedly told the investors to write checks payable to personal bank and brokerage accounts he opened in his wife’s name. The complaint alleges that instead of investing the money as he promised, Simanski used the money to repay other investors and for his own personal expenses.
His scheme reportedly fell apart when one of his clients contacted the Financial Industry Regulatory Authority (FINRA) and Simanski admitted his wrong doing to his employer. According to his broker report, Simanki was registered with Next Financial Group in Altoona, Pennsylvania from August 1999 until June 2016 when he was fired because he “sold fictitious investments and converted the funds for his own personal use and benefit.” He has 23 customer complaints listed on his FINRA broker report.
FINRA barred Simanksi in June 2016 from associating with any FINRA member at any time.
Simanski agreed to settle the SEC’s charges against him. The settlement, which is subject to court approval, orders injunctive relief and disgorgement of ill-gotten gains plus interest. He also agreed to the entry of an SEC order that, when entered, will bar him from the securities industry for the rest of his life.
Further, Simanski pleaded guilty to criminal charges in a parallel action, according to the U.S. Attorney’s Office for the Western District of Pennsylvania.
Simanski was reportedly sentenced Wednesday to 78 months in a federal prison for defrauding clients. The judge also reportedly imposed three years of supervision to follow his prison sentence. According to news reports, Federal marshals took Simanski into custody after the hearing.
Failure to Supervise
The White Law Group is investigating potential claims involving Douglas Simanski and the liability his employers may have for failure to properly supervise his alleged activities.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
Are you concerned about your investments with Douglas Simanski? If so, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney specializing in investment fraud, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.