Ex-Next Financial broker faces police investigation for $1.5M theft from elderly Texas couple

A broker booted from Next Financial is under investigation by the police in San Antonio for his role in an alleged theft of about $1.5 million from an elderly couple.
AUG 05, 2009
A broker booted from Next Financial is under investigation by the police in San Antonio for his role in an alleged theft of about $1.5 million from an elderly couple. The broker, Jeremy McGilvrey, was fired from Next Financial Group Inc. of Houston in May for “borrowing money from a client,” according to records with the Financial Industry Regulatory Authority Inc. of Washington and New York. Having such a relationship with a client is a significant violation in the brokerage industry. Mr. McGilvrey has not been arrested, but the police are investigating the matter as are local securities regulators, said Cliff Herberg, first assistant district attorney for the Bexar County District Attorney's Office in Texas. “The state securities board has interviewed him once,” Mr. Herberg said. Repeated calls to Mr. McGilvrey's firm, Hill Country Wealth Inc. in San Antonio, went unanswered. Mr. McGilvrey is also being sued by the couple — Thomas H. Crouch, 93, and his wife, Dorothy, 89 — from whom he allegedly stole the $1.5 million. Mr. Crouch suffers from severe Alzheimer's and dementia, and Mrs. Crouch is being treated for depression and memory loss. "These guys were grabbing money with both hands," said the couple's son James Crouch, who is an attorney in Houston. The alleged theft has three parts, he said: a $500,000 loan from the couple to Mr. McGilvrey and his firm, the couple's $500,000 purchase of stock in Hill Country and $500,000 that is simply missing. James Crouch alleged that his parents were also overcharged fees of $130,000. He became guardian for his father and stepmother in March, and he became suspicious of Mr. McGilvrey around that time and worked to uncover the alleged fraud. On behalf of his parents, James Crouch filed a lawsuit against Mr. McGilvrey last week in Bexar County Probate Court in San Antonio. The suit also names Hill Country Wealth and other Hill Country executives. James Crouch said an amended complaint could be filed this week that would include Next Financial, and he is also working to determine whether to sue LPL Financial of Boston, where Mr. McGilvrey was affiliated before joining Next in June 2008. Other clients of Mr. McGilvrey have contacted him about the matter, James Crouch said. According to Finra records, Mr. McGilvrey was “permitted to resign” from LPL last year after he failed to supervise properly a registered rep and for not reporting a business transaction. Executives with Next Financial did not return calls for comment, and a spokesman for LPL declined to comment. Next Financial recently has had problems with securities regulators as well as deals that have gone afoul. Last month, Finra fined Next Financial $1 million for failures to supervise its network of some 130 branch managers, also known as Office of Supervisory Jurisdiction in the independent-contractor-broker-dealer industry. Next Financial was also one of a number of independent broker-dealers with advisers selling private securities of an oil and gas partnership, Provident Asset Management LLC of Dallas, that the SEC charged last month with committing a $485 million fraud. Mr. McGilvrey is a person of some note in San Antonio. According to a report in the San Antonio Express-News on Sunday, he was the featured “financial planning expert” on the website of WOAI News 4, a local television and radio station. He also has appeared regularly in advertisements for Hill Country Wealth, the paper said. According to filings with Texas securities regulators, HCW Asset Management LLC of San Antonio, has no client assets.

Latest News

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

RIA moves: The Mather Group, Brand Asset Management announce deals
RIA moves: The Mather Group, Brand Asset Management announce deals

Consolidation continues in US wealth management industry.

US broker-dealer fintech aims for global footprint as it acquires international firm
US broker-dealer fintech aims for global footprint as it acquires international firm

Tech company democratizes access to US trading infrastructure.

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.