Eduardo Guillermo Diaz, of Biloxi, Mississippi, a former stockbroker formerly  registered with Next Financial Group, Inc., has been subject to a customer initiated investment related arbitration action in which the customer received $250,000.00 in damages based upon allegations that Diaz made misrepresentations to the customer concerning investments, failed to provide the customer with information concerning the investment’s risk or status, and placed fraudulent details on the customer’s application.

FINRA Public Disclosure reveals that Diaz was also subject to a customer initiated investment related arbitration action on March 8, 2012, based upon allegations that Diaz failed to disclose information concerning subaccounts within the customer’s variable annuity as well as guarantees associated with the annuity.

On September 7, 2016, Diaz was permanently barred from acting as an investment adviser or broker, or associating with firms selling securities or providing investment advise to the public according to a Securities and Exchange Commission (SEC) Order containing findings that Diaz committed fraud. SEC Admin Release 34-78776, IA Release 40-4524 (Sept. 7, 2016).

According to the Action, from approximately February 2012 through October 2015, during his association with Kovack Securities, Inc., he devised a scheme to defraud investors to obtain money for his own personal use; As part of the scheme, he employed material false representations and promises; Diaz solicited significant sums of money from clients, several of whom were prior business relationships and friends; He also used investors’ money to pay off previous investors; and In one instance, on or about February 23, 2012, an investor wrote a check for $50,000 and mailed it to Diaz for the purpose of purchasing an annuity. None of the money was invested in an annuity. Instead, Diaz deposited the check into an account in the name of Diaz Financial Services and the funds were converted to Diaz and subsequently used to pay a variety of personal and business related expenses.

Diaz’s registration with Next Financial Group, Inc. was terminated in November of 2012. From December of 2012 to January of 2013, he was registered with Kovack Securities, Inc.

Guiliano Law Group

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