FINRA records indicate that Thomas Heflin Redmond, Jr. was registered with these firms during the time frames indicated:
- Next Financial Group, Inc. 12/2007-10/2009
- Capital Financial Services, Inc. 8/2005-11/2007
- Empire Financial Group, Inc. 11/2003-8/2005
- Freedom Financial, inc. 2/2002-11/2003
- SII Investments, Inc. 3/2001-3/2002
In 2011, FINRA revoked Redmond's registration for making an unsuitable investment to a 60 year old widow, for whom he invested 47.5% of her liquid net worth in high risk investments including $100,000 in an oil and gas limited partnership. Redmond forged signatures and otherwise failed to follow the instructions of the customer. To top it off, Redmond falsely told the customer that he had invested a third of his personal assets in one of the same investments, a common sales pitch utilized by unscrupulous investors to gain investor confidence.
On March 1 2013, Redmond was charged with fraud in Indiana for defrauding 10 elderly investors out of more than $580,000. According to Marion County Prosecutor Terry Curry:
"This case is particularly devastating as it involves the most trusting of victims: elderly widows who knew Redmond through church and a pair of missionaries who spent their life's work overseas counseling survivors of Auschwitz," said Secretary Lawson. "These Hoosiers, who thought they were making sound investments, have lost their life savings."
Redmond admitted that he began stealing from clients in 2004 by feigning a shared Christian belief to secure the trust and confidence of his victims. To perpetuate this ponzi scheme, Redmond prepared and sent fake statements to the victims. To read the press release from Indiana authorities see this.
More information regarding the regulatory and disciplinary history of Redmond, Next Financial and Capital Financial Services can be found by visiting FINRA's BrokerCheck website.
Brokerage firms have a duty to supervise the brokers that work for them to assure that they make suitable and legitimate investment recommendations. Investors who have suffered losses due to the negligence or fraud of their broker may be able to recover all or a part of their losses through FINRA arbitration.
If you have questions about the way your brokerage account has been handled, call for a no charge consultation with an experienced securities fraud attorney.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.