Former NEXT Financial Group Broker, Charles Doraine, Barred By FINRA
Charles Doraine (CRD # 70411) was a Financial Advisor at NEXT Financial Group in Corpus Christi, Texas. Charles Doraine has been in the securities industry since 1972 and previously worked at Merrill Lynch.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on April 27, 2020, Charles Doraine was sanctioned by FINRA, barring him from associating with a broker-dealer. According to the Letter of Acceptance, Waiver and Consent, “Doraine consented to the sanction and to the entry of findings that he refused to provide on-the-record testimony requested by FINRA in connection with its investigation of his suspected unsuitable recommendations of short-term trading in mutual fund A shares, short-term trading of Puerto Rican municipal bonds, and overconcentration of customer accounts in Puerto Rican municipal bonds.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018059323201%20Charles%20L.%20Doraine%20CRD%2070411%20AWC%20va.pdf
In addition, Charles Doraine has has three customer complaints filed against him since 2018 and a total of seven customer complaints during his career. Among the customer complaints include the following:
• September 2019—”Customers allege between 2012 and 2018, RR engaged in improper mutual fund switches, recommended and sold unsuitable variable annuities, and took advantage of the diminished capacity of one of the claimants.” Alleged damages are $500,000 and the matter remains pending.
• September 2018—”Claimants allege that during the period 2012 through 2015, Registered Representative excessively traded bonds and mutual funds and recommended an unsutitable concentration in Puerto Rican bonds.” Alleged damages are $10 million and the matter remains pending.
• May 2018—“Customer alleges that from October 2012 through 2017, registered representative made in and out mutual fund trades that were unsuitable for a low risk tolerance account.” The matter was settled for $375,000.
• June 2005—”CLIENTS ALLEGES THAT FINANCIAL ADVISOR MADE UNAUTHORIZED TRADES, CHURNED AND MADE MISREPRESENTIONS.” The matter was settled for $400,000.
• August 2001—”EXECUTRIX OF THE ESTATE OF [CUSTOMER] ALLEGES CHURNING AND UNSUITABLE TRADING.” The matter was settled for $350,000.
For a copy of Charles Doraine’s CRD, click https://brokercheck.finra.org/individual/summary/70411#disclosuresSection.
In addition, in 2007, Charles Doraine was the subject of a regulatory sanction, agreeing to a suspension by FINRA for five days and a fine. According to the sanction, “NASD RULES 2110, 2510(B) – CHARLES LAWRENCE DORAINE EFFECTED TRADES IN A PUBLIC CUSTOMER’S ACCOUNT PURSUANT TO INSTRUCTIONS FROM A THIRD PARTY WHO, ALTHOUGH VERBALLY AUTHORIZED TO TRADE THE ACCOUNT, WAS NOT AUTHORIZED IN WRITING TO EXECUTE TRANSACTIONS ON THE ACCOUNT.”
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.
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