Neal Nakagiri Faces Six-Figure Investor Claims

Neal Nakagiri (CRD #: 722534), a broker registered with NPB Financial Group, LLC, is facing allegations that he failed to perform his due diligence and failed to supervise. The customer disputes currently pending against Neal Nakagiri total over $700,000. This information is from Neal Nakagiri’s BrokerCheck record, accessed on March 13, 2022.

Allegations of Failure to Supervise and Breach of Duty

On October 4, 2021, an investor filed a complaint against Neal Nakagiri alleging due diligence failures, breach of fiduciary duty, and failure to supervise, among other claims. The investor is seeking $422,739; the dispute is currently pending.

On May 17, 2021, an investor filed another complaint against Neal Nakagiri alleging a breach of fiduciary duty, breach of contract, unauthorized trading, failure to supervise, and elder financial abuse. The investor is seeking $300,000; the dispute is currently pending.

On February 5, 2021, an investor alleged that Neal Nakagiri failed to appropriately supervise activities at the firm where he was designated as a control person. The investor sought $400,000 and the dispute settled for $199,000.

Failure to Supervise and Due Diligence Rules

FINRA Rule 3110 requires brokerage firms to establish and maintain supervisory systems to ensure that all their activities are compliant with FINRA rules. This includes designating a registered principal to carry out supervisory duties.

FINRA Rule 2111 includes the “fundamental responsibility for fair dealing” and requires that brokers exercise “reasonable diligence” in determining the suitability of investments that they recommend to investors. It requires that a broker only recommend investments based on a reasonable indication that the recommendation fits the customer’s investment profile.

Background Information

Neal Nakagiri has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 55 – Limited Representative-Equity Trader Exam
• Series 5 – Interest Rate Options Examination
• Series 53 – Municipal Securities Principal Examination
• Series 24 – General Securities Principal Examination
• Series 4 – Registered Options Principal Examination
• F04 – Financial Principal Examination

Neal Nakagiri is currently registered as a broker in 11 states and is a registered broker in California.

Neal Nakagiri has worked for the following firms:

• NPB Financial Group, LLC (CRD #: 137743)
• Associated Planners Investment Advisory Inc (CRD #: 104790)
• Associated Securities Corp. (CRD #: 12969)
• Associated Planners Securities Corporation of Nevada, Inc. (CRD #: 30200)
• W&D Securities, Inc. (CRD #: 867)
• Morgan, Olmstead, Kennedy & Gardner, Incorporated (CRD #: 595)
• Jefferies & Company, Inc. (CRD #: 2347)

Kurta Law Can Help

If you worked with Neal Nakagiri and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.