Douglas Simanski: Altoona, Pennsylvania Financial Advisor Barred

A disciplinary action taken by the Securities and Exchange Commission against former Altoona, Pennsylvania broker and investment advisor Douglas Simanski (CRD# 2606998) barred him over allegations he defrauded investors and used investor funds for his own personal gain. A former representative of Next Financial Group, Simanski has also received 21 customer complaints that reached settlements.

Filed in November 2018, the SEC order barring Douglas Simanski found that while a representative of Next Financial Group, he participated in a scheme in which he made misrepresentations to his customers to induce them to “send money to him personally to invest in companies that he claimed to own or operate.” FINRA’s findings state that he did not invest these funds as promised, and instead used funds to pay other investors or direct them toward his own personal expenses. In November 2018, he pled guilty to a charge that he violated the Securities Exchange Act of 1934 by defrauding investors and obtaining money and property “by means of false and fraudulent pretenses, representations, and promises,” admitting that he used some investor funds for his own personal ends. He was consequently barred from acting as a broker or investment adviser for an indefinite period.

A 2017 complaint alleged that as a representative of Next Financial Group, Douglas Simanski conducted an investment as an unapproved activity away from the firm. The complaint reached a settlement of $97,000.

A 2017 complaint alleged that as a representative of Next Financial Group, Douglas Simanski made unapproved investments away from the firm. The complaint reached a settlement in 2018 of $440,000.

A 2017 complaint alleged that as a representative of Next Financial Group, he unlawfully diverted funds to an account in his name and used them for his own personal gain. The complaint reached a settlement of $215,000.

A 2016 complaint alleged that as a representative of Next Financial Group, he converted funds and used them for his own personal benefit. The complaint reached a settlement of $140,000.

A 2016 complaint alleged that as a representative of Next Financial Group, he sold fraudulent and unregistered securities. The complaint reached a settlement of $120,000.

Douglas Simanski is currently not registered as a broker or investment advisor. His employment history includes Next Financial Group in Altoona, Pennsylvania and Advantage Capital Corporation in Atlanta, Georgia. He currently holds zero state licenses and has passed three securities industry qualification examinations.