Charles Kulch, Formerly of Next Financial Group, Accusing of Over-Concentrating Portfolios

Kulch was named in a civil action brought by the Massachusetts Securities Division.

The Sonn Law Group is investigating allegations that Charles Kulch over-concentrated clients’ portfolios. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Charles Kulch (CRD#: 2371584) was registered as a broker with Next Financial Group from 2006 until 2020. Kulch was previously employed by Investors Capital Corporation from 1996 until 2006. 

Kulch has six disclosures on his BrokerCheck report since 2010. 

July 2020 Regulatory Judgment

• Status: Pending
• Initiated By: Massachusetts Securities Division
• Allegations: “Kulch over-concentrated customers in illiquid, risky and high-commissioned products, including non-traded real estate investment trusts and variable annuities. When filing disclosure forms required by his firm, Kulch filed multiple forms simultaneously, and failed to account for the effect of each transaction on subsequent forms.”

August 2017 Customer Dispute

• Status: Denied
• Allegations: “Customer alleges during the period January 2006 through February 2008, investments recommended by registered representative were not suitable or appropriate for customer’s level of risk.”
• Damage Amount Requested: $150,000.00

June 2016 Customer Dispute

• Status: Settled
• Allegations: “Poor performance”
• Settlement Amount: $120,000.00

April 2015 Customer Dispute

• Status: Settled
• Allegations: “Customer alleges that in 2007-2008 representative’s recommendation to invest most of his net worth in numerous high risk, speculative, illiquid private placements and tenant-in-common interests was unsuitable.”
• Damage Amount Requested: $499,000.00
• Settlement Amount: $150,000.00
• Broker Comment: “The claims against Mr. Kulch were dismissed in connection with a settlement entered into between claimant and Next Financial Group, Inc. Mr. Kulch was not a party to the settlement agreement.”
  

April 2015 Customer Dispute

• Status: Settled
• Allegations: “Unsuitability, breach of fiduciary duty, common law fraud, and violation of the New Hampshire Securities Act.”
• Damage Amount Requested: $4,000,000.00
• Broker Comment: “I was not named as a respondent, did not participate in nor contribute to the settlement and intend to seek expungement of any reference to the Tokena claim.”

December 2011 Regulatory Judgment

• Status: Final
• Initiated By: New Hampshire
• Allegations: Charles Kulch failed to reasonably supervise the dissemination of seminar invitations containing inaccurate information.
• Resolution: Consent
• Sanctions: Cease and Desist
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $140,000.00
• Sanctions: Subject and subject’s firm jointly and severally liable for fine/costs to be paid no later than 1/1/2015.
• Broker Comment: “Prior to the distribution of each mailer, every mailer went through an approval process. A direct marketing firm (the ‘Direct Marketing Firm’) produced a proof of the mailer. The Direct Marketing Firm then sent the proof and a cover page to Kulch Financial. Kulch Financial’s Director of Sales then forwarded the proof and cover page to Next for approval. The cover page contained a prominent disclaimer stating ‘check everything’ and that approving the proof ‘indicated that you are taking complete responsibility for any errors or omissions as reflected on this proof.’ Upon receipt of approval from Next, the director of sales forwarded that approval to the Direct Marketing Firm. Next approved each of Kulch Financial’s mailers prior to distribution but took no action to verify the accuracy of two designs that appeared on such mailers until Bureau informed Next that the designations were inaccurate in December 2011.” A direct marketing firm that Mr. Kulch hired to prepare and mail seminar invitations added two logos to the invitations without his knowledge or approval.”

Contact Us Today

The Sonn Law Group is currently investigating allegations that Charles Kulch over-concentrated portfolios. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.