Next Financial Group former broker Charles Kulch, also known as Charles Chester Kulch, is under investigation in the wake of multiple customer dispute disclosures alleging unsuitability and an administrative complaint filed by the Secretary of the Commonwealth of Massachusetts alleging over-concentration, under review by investor rights attorney Alan Rosca.
The Rosca Scarlato LLC law firm attorneys have extensive experience representing victimized investors of broker misconduct. Attorney Alan Rosca and his colleagues are investigating conduct related to Charles Kulch’s customer dispute disclosures alleging over-concentration of his customers in illiquid investments such as non-traded REIT products.
Investors who are concerned about their investments with Kulch are encouraged to contact attorney Alan Rosca for a free, no obligation consultation and discussion of potential options, or to provide any useful information. Call 888-998-0530, send an email to arosca@rscounsel.law, or complete the contact form on this webpage.
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Broker Charles C. Kulch Allegedly Perpetrated a Scheme to Generate Commissions at The Expense of Investors
As alleged in the Massachusetts complaint, Kulch allegedly perpetrated a “deceptively simple” scheme at the expense of Massachusetts investors, generating nearly one million dollars in commissions from the sale of REITs and variable annuities from 2010 and 2015.
As part of the scheme, Kulch allegedly acquired a new customer, convinced the customer non-traded REITS were suitable long-term investments, then sold the investor as many shares of non-traded REITs as he could.
The complaint further alleges Kulch falsely calculated the percentage of customers’ liquid net worth in addition to allegedly failing to report any change in liquid net worth for each transaction.
Kulch also allegedly recommended his customers to diversify their holdings by purchasing variable annuities, in addition to REITs and other risky investments.
Broker Charles Kulch’s former employer at the time, Next Financial Group, put policies in place to protect investors from conduct like Kulch’s, but Kulch allegedly took steps to manipulate the calculation of key figures monitored by the firm, as stated in the complaint.
Kulch Is the Subject of Multiple Customer Dispute Disclosures Alleging Unsuitability
According to Kulch’s FINRA Brokercheck page, he was the subject of multiple customer dispute disclosures alleging unsuitability.
Four customer disputes allege unsuitable recommendations of registered, non-traded real estate investment funds. One dispute was filed in December 2020, another was filed in October 2020, and two disputes were filed in August 2020. All four customer disputes seek unspecified compensatory damages. As of the date of this article, all four disputes were settled.
Between July 2006 and September 2020, Kulch and/or his employers paid nearly one million dollars in settlements to his investors according to his Brokercheck report.
A customer filed a dispute in October 2020 alleging unsuitable nontraded REITS and received a settlement to the tune of $14,999 in September 2020.
Another customer filed a dispute in May 2016 alleging poor performance and received a settlement of $120,000 in May 2016.
Two customers filed disputes in April 2015 alleging unsuitability, among other things. One customer received a settlement to the tune of $525,000 in April 2016 and the second customer received a settlement of $150,000 in May 2016.
Investors who are concerned about their investments with Kulch may contact attorney Alan Rosca and his colleagues for a free case evaluation and discussion of potential options by calling 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Kulch Was the Subject of Massachusetts and New Hampshire Regulatory Actions
Reportedly, Next Financial Group was fined $475,000 for failure to supervise the sale of REITs, as alleged in a Consent order issued by the Massachusetts Securities Division.
The Massachusetts Securities Division initiated a regulatory action in July 2020 alleging Charles Chester Kulch over-concentrated customers in illiquid, risky, and high commission products, including non-traded real estate investment trusts and variable annuities.
In addition, in 2011 the New Hampshire Securities Division ordered Kulch to cease and desist and pay a fine of $140,000 for alleged failure to supervise the dissemination of seminar invitations containing inaccurate information.
Kulch investors should be aware that Charles Kulch was registered with Next Financial Group located in Nashua, New Hampshire from October 2006 until June 2020 according to his Brokercheck report.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Options for Charles Kulch Investors
Rosca Scarlato LLC law firm attorneys have cumulated decades of experience between them in assisting victimized investors of broker misconduct and are currently evaluating potential options for investors who are concerned about their investment with Charles Kulch.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients.
Charles Kulch investors who are concerned about their investments in connection with Kulch’s alleged scheme to defraud or alleged broker misconduct, may contact attorney Alan Rosca for a free, no-obligation evaluation of their potential options at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.