Next Financial is on the hook for an additional $325,000 in connection to the sale of non-traded real estate investment trusts.

The New Hampshire Bureau of Securities Regulation determined that, between 2009 and 2016, the company failed to supervise the sale of the securities, resulting in unsuitable sales to clients over the age of 80 as well as over-concentration in the securities, according to a consent order published by the regulator.

The bureau says its investigation of Next Financial was prompted by a 2017 complaint from a Massachusetts resident about one of the firm’s registered representatives, Charles Chester Kulch.

The regulator ordered Next Financial to pay a $235,000 administrative fine and costs of $90,0000 and to put Kulch on heightened supervision pending the outcome of its investigation, according to the consent order.

The company agreed to the sanctions without admitting or denying the findings, the bureau says.

Kulch joined the financial services industry in 1993 and came to Next Financial in 2006, according to his BrokerCheck profile.


He has four regulatory disclosures, including a suspension from 1999 over allegations that he operated a branch in New Hampshire without having the necessary qualifications, and six customer disputes on his record, with four settled and two denied, according to BrokerCheck. He remains registered with Next Financial, according to his record.

Earlier, the Massachusetts Securities Division fined Next Financial $150,000 over the sale of non-traded REITs from 2007 through 2017, prompted by a complaint about a broker the regulatory agency identified only as “Rep A.”