Corporate & Securities Law

Jeremy McGilvrey, Next Financial Group broker, Prison bound

By Mark Maddox

Jeremy McGilvrey, a former broker with Next Financial Group and LPL Financial and one-time CEO of the now-defunct Hill Country Wealth investment firm, had a reputation for extravagance: A black Bentley convertible, exotic vacations and celebrity parties. Today, McGilvrey is trading his fancy suits for a different kind of fashion wear: a prison uniform.

On Dec. 1, 2009, Bexar County state District Judge Maria Teresa sentenced the former high-flying investment adviser to 20 years in prison for swindling clients out of millions of dollars. McGilvrey also was ordered to pay a $10,000 fine and nearly $2 million in restitution to his victims. The amount could increase if authorities identify additional clients taken in by the Texas broker.

In October, McGilvrey, 32, pleaded guilty to felony theft and misapplication of fiduciary property of clients, most of whom were elderly. Two victims, Thomas and Dorothy Crouch, were taken for an estimated $1.6 million. Their son, Houston attorney James Crouch, has since filed a lawsuit against McGilvrey.

The 94-year-old Crouch, who once served as deputy surgeon general of the U.S. Air Force, died Nov. 30, 2009. He suffered from Alzheimer?s.

McGilvrey was fired from Next Financial in May 2009 for ?borrowing money from a client,? according to records with the Financial Industry Regulatory Authority (FINRA).

Before joining Next Financial, McGilvrey was affiliated with LPL Financial of Boston. FINRA records state that he was ?permitted to resign? from LPL last year after failing to properly supervise a registered representative and for not reporting a business transaction.

Next Financial also is one of a number of independent broker/dealers with advisers connected to sales of private securities of an oil and gas partnership, Provident Asset Management LLC. In July, the Securities and Exchange Commission (SEC) charged Provident of committing a $485 million fraud.

Our lawyers are actively pursuing Jeremy McGilvrey and Next Financial Group. Please tell us about your investment losses by leaving a message in the comment box, or the Contact Us page. We will counsel you on your options.

Full post as published by Representing Investors on January 08, 2010 (boomark / email).