Charles Doraine, Formerly of Next Financial Group, Barred by FINRA After Refusing to Provide Testimony

Doraine was being investigated by FINRA for unsuitable recommendations.

The Sonn Law Group is investigating allegations that Charles Doraine made unsuitable investment recommendations. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Charles Doraine (CRD#: 70411) was recently barred by FINRA after refusing to provide on-the-record testimony 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.

Doraine has eight other disclosures on his BrokerCheck report.

September 2019 Customer Dispute

• Status: Pending
• Allegations: “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.”
• Damage Amount Requested: $500,000.00

September 2018 Customer Dispute

• Status: Settled
• Allegations: “Claimants allege that during the period 2012 through 2015, Registered Representative excessively traded bonds and mutual funds and recommended an unsuitable concentration in Puerto Rican bonds.”
• Damage Amount Requested: $10,000,000.00
• Settlement Amount: $3,050,000.00

May 2018 Customer Dispute

• Status: Settled
• Allegations: “Customer alleges that from October 2012 through 2017, the registered representatives made in and out mutual fund trades that were unsuitable for a low-risk tolerance account.”
• Damage Amount Requested: $2,500,000.00
• Settlement Amount: $375,000.00

May 2007 Regulatory Judgment

• Status: Final

• Initiated By: NASD

• Allegations: “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.

• Resolutation: Acceptance, Waiver & Consent (AWC)

• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

• Sanctions: Suspension
• Regulator Statement: “Without admitting or denying the findings, Doraine consented to the described sanctions and to the entry of findings; therefore, he is fined $5,000 and suspended from association with any NASD member in any capacity for five business days. The suspension in any capacity is in effect from June 4, 2007 through June 8, 2007. Fines paid.” 

June 2005 Customer Dispute

• Status: Settled
• Allegations: “Clients allege that financial advisor made unauthorized trades, churned and made misrepresentations.”
• Damage Amount Requested: $2,348,000.00
• Settlement Amount: $400,000.00

August 2001 Customer Dispute

• Status: Settled
• Allegations: “Executrix of the estate of [customer] alleges churning and unsuitable trading.”
• Damage Amount Requested: $1,722,485.00
• Settlement Amount: $350,000.00
• Broker Comment: To avoid the cost and uncertainty of litigation.

September 1989 Customer Dispute

• Status: Settled
• Allegations: “Customer alleged unauthorized and unsuitable transactions resulting in a claim of $265,000.”
• Damage Amount Requested: $265,000
• Settlement Amount: $100,000
• Broker Comment: Merrill Lynch settled this matter in the amount of $100,000. While we believe that this case was defensible and the merits were on the side of Merrill Lynch & Co.; given the age and retirement status coupled with the cost of defense, we believed settlement to be in the best interest of all parties.

June 1989 Customer Dispute

• Status: Settled

• Allegations: “Unsuitable, inappropriate investments.”

• Settlement Amount: $53,000.00
• Broker Comment: $53,000.00 while we believe that this was a frivolous claim without merit we settled for the cost of defense. We only agreed to the settlement after Mr. Doraine was dismissed from the case because he was totally blameless in this matter and would have prevailed if the matter had gone to trial. Due to this factor, Mr. Doraine was not required to participate in the settlement. 

Contact Us Today

The Sonn Law Group is currently investigating allegations that Charles Doraine made unsuitable recommendations. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.