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Next Level Holdings and Yield ÍøÆØ³Ô¹Ïalth Under Federal and State Investigation

Posted on January 3rd, 2025 at 12:06 PM
Next Level Holdings and Yield ÍøÆØ³Ô¹Ïalth Under Federal and State Investigation

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

Federal and state authorities are investigating Next Level Holdings and Yield ÍøÆØ³Ô¹Ïalth, two investment firms accused of offering high-yield financial products now facing significant turmoil, according to the Wall Street Journal. The Securities and Exchange Commission (SEC) issued subpoenas to individuals involved with the firms in late November, and multiple state securities regulators have launched parallel inquiries.

The Miami- and Medellín-based operations raised tens of millions of dollars in 2023 and 2024 by promising annual returns as high as 15 percent. Despite those assurances, Next Level ceased interest payments and announced a wind-down in November, while Yield ÍøÆØ³Ô¹Ïalth closed its doors in September.

The Wall Street Journal reports that at the center of the controversy is Paul Regan, CEO of Next Level, who has been barred from the securities industry for life since 2004.

Wall Street Journal also reports that both firms are under scrutiny for their promises of outsized returns, which many regulators view as red flags for potential fraud. The investigations will likely focus on asset management practices, misrepresentations to investors, and potential violations of securities laws.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

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