Charles Chester Kulch of Nashua New Hampshire a stockbroker formerly registered with NEXT Financial Group Inc. has been charged by Massachusetts Securities Division with violating Massachusetts laws founded on accusations that he sold risky, illiquid and unsuitable non-traded REITs to customers and had overconcentrated their accounts in those products. In the Matter of Charles C. Kulch Docket No. E-2017-0079.

According to the Complaint, hundreds of REITs had been recommended and sold to investors in Massachusetts to customers by Kulch. The regulator indicated that Kulch executed REIT transactions in violation of Next Financial Group’s written supervisory procedures. The securities broker dealer allegedly failed to supervise those transactions and had violated its own procedures in authorizing them.

The Complaint alleges that Kulch sold customers Strategic Storage Trust, Cole Credit Property Trust III, Cole Credit Property Trust IV, Behringer Harvard Multifamily REIT I, SP Carey CPA 17 Global REIT, Steadfast Income REIT, and Phillips Edison ARC Shopping Center REIT, and Inland Real Estate Income Trust.

Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Kulch has been identified in eleven customer initiated investment related disputes concerning accusations of his wrongdoing when associated with NEXT Financial Group and Investors Capital Corp. Kulch is the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $525,000.00 in damages supported by allegations including breach of fiduciary duty and unsuitable private placement transactions at NEXT Financial Group. FINRA Arbitration No. 15-00762 (Apr. 13, 2016). The claim contains accusations of fraud and the violation of New Hampshire Securities Act.

On May 23, 2016, a customer initiated investment related complaint regarding Kulch’s conduct was resolved for $120,000.00 in damages founded on accusations that the customer purchased underperforming real estate security investments through Kulch at Investors Capital Corp.

On August 11, 2017, another customer filed an investment related complaint involving Kulch’s activities in which the customer requested $150,000.00 in damages based upon allegations that unsuitable real estate securities were recommended by Kulch while he was associated with NEXT Financial Group and Investors Capital Corp. The complaint alleges that the investments ran contrary to the customer’s risk tolerance.

Kulch is also the subject of a customer initiated investment related FINRA securities arbitration claim where the customer sought compensatory damages supported by accusations that they had been placed into bad non-traded real estate investment trusts because of Kulch. FINRA Arbitration No. 20-02779 (Aug. 28, 2020). Kulch is referenced in an additional customer initiated investment related FINRA securities arbitration claim in which the customer requested compensatory damages based upon accusations of poor investment advice regarding the customer’s investments in REITs from August of 2012 to February of 2016 because of Kulch and NEXT Financial Group. FINRA Arbitration No. 20-02852 (Sept. 8, 2020).

On September 21, 2020, another customer initiated investment related FINRA securities arbitration claim involving Kulch’s conduct was settled for $14,999.00 in damages founded on allegations of the sale of unsuitable non-traded real estate investment trusts by Kulch at NEXT Financial Group. FINRA Arbitration No. 20-03499. On October 20, 2020, a different customer filed an investment related FINRA securities arbitration claim regarding Kulch’s activities where the customer sought compensatory damages supported by allegations that unsuitable recommendations were made by Kulch in regard to REITs that he sold to the customer while registered with NEXT Financial Group. FINRA Arbitration No. 20-03496 (Oct. 20, 2020).

The stockbroker is referenced in a customer initiated investment related FINRA securities arbitration claim where the customer sought compensatory damages based upon allegations that from September of 2015 to June of 2020, the customer had been provided with unsuitable recommendations by Kulch concerning real estate investment trusts that they purchased through him at NEXT Financial Group. FINRA Arbitration No. 20-04073 (Dec. 16, 2020).

Kulch was registered with NEXT Financial Group between October 19, 2006 and June 24, 2020.

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