Broker Will Pay $5M To Settle Ponzi Investment Claims

Law360, New York (November 7, 2011, 4:40 PM EST) -- Next Financial Group Inc. agreed on Friday to pay $5.4 million to settle an investor class action claiming the broker-dealer promoted energy investments sponsored by a company accused of running a $485 million Ponzi scheme.

The proposed settlement would allow class members to recover approximately 12 cents for every dollar they invested with now-bankrupt Provident Royalties LLC through Next between 2006 and 2009. More than 700 investors bought approximately $43 million worth of Provident securities from Next and lost $42 million on those investments, according to...
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