Posted December 4, 2024
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Attention Next Level and/or Yield Wealth investors: contact investor lawyers for a free evaluation of your potential claims for compensation today.
✓ Are you an investor in Next Level Holdings, Yield Wealth Management, Yield BNK, Yield Receivables, or related entities?
✓ Did you invest in Mega High-Yield Term Deposit at the recommendation of a financial advisor or investment professional?
✓ Are you concerned about the alleged suspension of Next Level/Yield investor distributions in the wake of the revelations in the Wall Street Journal (“WSJ” or “the Journal”) investigatory reports?
✓ Would you like your potential options for compensation to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Free Case Evaluation
Posted December 4, 2024
Following the recent series of articles by Wall Street Journal (“WJS”) detailed below, the Rosca Scarlato LLC investor rights lawyers led by Alan Rosca, a partner and investor advocate who often represents victims of investment-related misconduct, started evaluating claims for compensation against financial service firms that employed advisors who recommended Yield investments.
Yield investors interested in evaluation of potential options to seek compensation and/or pursue claims related to their Yield investment may contact investor right attorneys Alan Rosca or Paul Scarlato. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Between August 30 and November 22, 2024, the WSJ published a series of troubling investigative reports revealing significant concerns surrounding the online offerings by a Douglassville, PA, investment-advisory firm called Yield Wealth and its affiliate, Next Level Holdings. Both entities reportedly marketed high-return investment products that raised red flags regarding misrepresentation, regulatory violations, and the risk of significant investor losses.
According to the WSJ’s findings, Yield Wealth reportedly positioned itself as a provider of innovative financial products with high returns. Among its most marketed offerings was “Mega High-Yield Term Deposits” (also known as the Mega or Odyssey) presented as insured for up to $10 million by reputable entities, including Lloyd’s of London, risk-free, and promising up to 17.1% annual returns. Furthermore, WSJ reports that Yield Wealth’s website YieldWealthManagement.com described the firm as “SEC-regulated” and that it uses Charles Schwab as custodian for the safekeeping of its customers’ assets.
Contrary to these claims, WSJ’s investigation revealed, among others, that Yield Wealth’s registration with the Securities and Exchange Commission (“SEC”) had reportedly been terminated in September 2024. In addition, a spokesperson for Schwab reportedly denied the existence of any custodial relationship. Lloyd’s of London declined to confirm any connection with Yield Wealth, the Journal adds. Furthermore, Yield’s promotional materials allegedly downplayed or omitted the risks disclosed in private placement documents, according to the Journal. Yield Wealth was reportedly dissolved in September 2024, WSJ adds.
Potential Compensation Claims
The Journal’s investigation revealed that “the driving force behind” the Yield investments appears to be the founder of Next Level Holdings, Paul Regan. Allegedly, headquartered in Miami with an office in Medellin, Colombia, Next Level Holdings is described as a “megastructure house” employing a network on 584 salespersons, including stockbrokers and insurance agents, involved in the sale of Yield deposits. The sales agents reportedly earned between 9% and 12% to promote Yield products and that some agents may have earned up to 21%, according to WSJ’s findings.
According to WSJ, Paul Regan, also known as Henry Paul Regan Jr., was reportedly barred from the securities industry in 2004 for failing to respond to regulatory inquiries, his FINRA Brokercheck Report reveals. Regan also has a documented history of financial misconduct, including allegations of theft and forgery, according to a 2005 Cease and Desist Order issued by the Oregon Financial Regulators. Paul Regan was reportedly fined $60,000 after he allegedly caused $298,000 in total losses to an elderly customer with dementia.
Despite his industry bar, Paul Regan was reportedly involved in the sales of Mega High-Yield Term Deposit personally, regularly participating in calls with individual investors, according to audio recordings of sales calls obtained by the Journal.
Regan also reportedly misrepresented his qualifications and past affiliations.
According to the Journal, his LinkedIn page claimed he had worked at Goldman Sachs. In response to WSJ’s inquiry the firm reportedly said it had no record that he was ever employed there, and shortly after allegedly being confronted about firm’s response, Regan’s LinkedIn page was deleted, the Journal reported.
Furthermore, Paul Regan reportedly told investors that he was a chartered financial analyst, a claim that was reportedly disproved by the CFA Institute following WSJ’s inquiries.
Finally, Paul Regan reportedly told investors that the Yield offering was “approved” by the SEC, the Journal reports.
According to WJS’s findings, approximately 340 individuals invested in Yield and Next Holdings, of which two-thirds invested through retirement plans, such as IRA. Sales information received by the Journal reveals that in 2024 alone investors invested over $59 million in Yield.
On November 15, 2024, after reportedly failing to send out monthly distributions, Next Level allegedly sent a letter to investors informing them that the firm is “winding up its affairs” and plans to liquidate the investments, according to WSJ.
In addition, the Journal reports that American IRA, a firm that handles the paperwork for investors who hold real estate, precious metals or other alternative investments in their IRAs reportedly announced it closed all accounts with assets at Next Level or Yield, after the company learned of Regan’s bar from the industry following WSJ’s articles. The Journal further reported that on November 18, 2024, American IRA distributed the residual cash in the accounts and sent out proofs of titles to investors.
On December 4, 2024, WSJ reported that Next Level and Yield Wealth are being investigated by the SEC and state securities regulators in several states.
Potential Compensation Claims
“Some of the Mega High-Yield Term Deposit investors may be able to seek compensation for their losses from third-party financial advisors or investment advisory firms that recommended the Yield investments to them,” said attorney Alan Rosca, a Rosca Scarlato partner and veteran investor advocate.
Investor rights attorneys Alan Rosca and Paul Scarlato have reviewed a significant volume of records related to this matter and are preparing claims for compensation on behalf of some of the investors in Yield investment offerings. They have decades of combined experience seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law, investment fraud, and/or Ponzi schemes.
If you are a Yield investor who bought Yield products at the recommendation of a financial professional and would like to learn more about their options, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information. All consultations are free.
The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful.
To reach attorney Alan Rosca or his colleagues, Yield investors may call 888-998-0530, email arosca@rscounsel.law , or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts, and can tailor any advice to that investor’s facts. This page is not affiliated with Yield Wealth Management, Yield Wealth Ltd., Yield BNK, Yield Receivables, Next Level Holdings, or any other related person or entity.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
SEC, States Investigate Firm Holding Couple’s $763,094 Retirement Fund, published by Wall Street Journal on December 4, 2024
‘I Don’t Know Where to Turn or What to Do.’ His $763,094 Retirement Fund Is in Limbo., published by Wall Street Journal on November 22, 2024
Solving the Mystery of an Investment That’s Too Good to Be True, published by Wall Street Journal on September 20, 2024
When Interest Rates Go Down, the Hucksters Spring Up, published by Wall Street Journal on August 30, 2024
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.