Earl Newsome: Ex-NEXT Advisor Faces $198K Complaint

Spring, Texas financial advisor Earl Newsome (CRD# 2436856) recently received an investor complaint alleging that his conduct resulted in six-figure damages. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with LPL Financial, having previously been registered with NEXT Financial Group.

Mr. Newsome’s BrokerCheck report discloses three investor complaints. The most recent, filed in August 2025, alleges that as a representative of NEXT Financial Group, he recommended unsuitable and “poorly designed” indexed universal life insurance policies. The pending complaint alleges damages of $198,000.

An earlier investor complaint, filed in 2008, alleged that as a representative of 1717 Capital Management, he misrepresented material facts relating to an insurance policy. The complaint alleged unspecified damages and was withdrawn.

A third investor complaint, filed in 2004, alleged that as a representative of 1717 Capital Management and Royal Alliance Associates, he recommended an unsuitable life insurance policy and provided unsuitable investment advice. In 2005 the complaint reached a settlement of $92,500. “As part of settlement agreement, customers stated that it was their opinion that representative ‘did not engage in intentional or deliberate misconduct with regard to our financial matters,’” states a comment included with the disclosure. “Settlement [was] reached to avoid protracted cost of legal proceedings.”

According to the Financial Industry Regulatory Authority, Earl Newsome holds 31 years of securities industry experience. Based in Spring, Texas, he has been registered as a broker and an investment advisor with LPL Financial since July 2025. His past registrations include NEXT Financial Group, 1717 Capital Management Company, Wealth Development Strategies Investment Advisory, and Royal Alliance Associates. His credentials include the passage of three securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the General Securities Representative Examination, or Series 7. He is licensed in Alabama, Colorado, Georgia, Illinois, Kentucky, New Jersey, North Carolina, Texas, Washington, and Wisconsin. (Information current as of October 25, 2025.)

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