Broker Charles Kulch Targeted In Investor Disputes, Massachusetts Securities Division Complaint
Soreide Law Group is investigating possible investor disputes against securities broker Charles Chester Kulch (CRD#: 2371584, Nashua, New Hampshire). Critically, the securities broker, who worked for NEXT Financial Group from 2006 to 2020, is the focus of at least 10 investors’ disputes. Not only that, but Massachusetts Securities Division filed a Complaint against Kulch for his alternative investment sales. Supposedly, the broker unreasonably advised multiple investors to buy non-traded REITs and annuities. Here’s more on the allegations against Kulch.
Charles Kulch Supposedly Makes Unreasonable Recommendations To NEXT Financial Client
Evidently, a client of NEXT Financial Group came forward with a lawsuit about Charles Kulch in October 2020. Particularly, the client alleged that Kulch recommended non-traded REITs from 2010 to 2015. It seems that the broker may have overlooked the client’s needs, risk tolerance or other suitability criteria when making recommendations. For this reason, the client demanded compensation in this ongoing matter.
NEXT Financial Group Client Indicates That Kulch Recommended Bad REITs
A similar dispute comes from a client of NEXT Financial Group in September 2020. Specifically, Charles Kulch supposedly had the client invest in real estate investment trusts from 2012 to 2016. It is unclear whether the client sustained losses from this investment. However, the client demanded compensation from NEXT Financial Group. This matter awaits a resolution.
Charles Kulch Purportedly Recommends Unsuitable REITs To NEXT Financial Group Client
Notably, in a third dispute listed on BrokerCheck, a client disputed Charles Kulch’s non-traded REIT sales. Mainly, this client argued that Kulch sold unsuitable investments in 2015. For this reason, the client asked for compensation in this unresolved matter.
Massachusetts Securities Division Pursues Enforcement Action Against Kulch
Also, in July 2020, the Massachusetts Securities Division brought a regulatory action against Charles Kulch for his sales practices. Specifically, the Division brought an Administrative Complaint against Kulch seeking sanctions including a bar, fines and disgorgement in connection with the broker’s allegedly unsuitable investment recommendations. Notably, the Division alleged that the broker had clients invest heavily in risky, illiquid and high-commission products. Those products included annuities, non-traded REITs and other alternative investments.
It appears from the Complaint that Charles Kulch’s clients invested in products including Steadfast Income REIT Inc., WP Carey CPA 17 Global REIT, Northstar Real Estate Income Trust, Strategic Storage, Cole Credit Property Trust III Inc., Cole Credit Property Trust IV Inc., Phillips Edison/ARC Shopping Center REIT, and Inland Real Estate Income Trust Inc. The broker supposedly sold Prudential’s Apex II Variable Annuity, American Skandia LifeVest II (ASL II), and American Skandia Life II too.
Critically, Kulch is accused of disregarding firm limits relating to how much of a client’s liquid net worth could be invested in a REIT product. The broker purportedly misrepresented clients’ liquid net worth to push sales through. Massachusetts Securities Division’s Complaint against Kulch is ongoing.
Losses From Kulch?
Kulch denies allegations against him. Have you experienced losses by investing through the broker? If so, reach out to Soreide Law Group at (888) 760-6552 and tell us about your investment losses. Soreide Law Group represents clients on a contingency fee basis and it advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and financial advisors.