Next Financial Breached Customers' Privacy: ALJ

Law360, New York (June 18, 2008, 12:00 AM EDT) -- An administrative law judge at the U.S. Securities and Exchange Commission has found that securities broker-dealer Next Financial Group Inc. violated customer privacy rules by asking new recruits to bring customer information gleaned from previous jobs.

In an initial decision issued Wednesday, Administrative Law Judge James T. Kelly ordered Next to pay a fine of $125,000 for allegedly violating SEC Regulation S-P, which prohibits disclosing nonpublic customer information to third parties without customers' consent. SEC staff had sought a fine of $325,000.

Next can appeal the...
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