Articles Tagged with Charles Doraine

Stoltmann Law Offices is investigating cases where brokers have overtraded to generate commissions in risky investments. FINRA, the federal securities industry regulator, has fined Next Financial Group, a broker-dealer owned by Atria Wealth Solutions, $750,000 to settle charges that it failed to supervise ‘unsuitable’ trading of mutual funds and municipal bonds by one unnamed broker, according to citywireusa.com.

FINRA found that the broker “engaged in short-term trading of Class A mutual fund shares in 19 client accounts, resulting in ‘unnecessary’ front-end sales charges of $925,000 from 2012 until February 2019.” All told, the broker racked up some $5 million in sales charges in the seven-year period. Additionally, FINRA found that “from June of 2013 to November of 2016, the broker engaged in short-term trading of Puerto Rican municipal bonds in 16 customer accounts, concentrating five of the accounts in these bonds.”

‘These bonds carried risks not associated with other municipal bonds because of concerns about the Puerto Rican economy and subsequent restructuring of Puerto Rican debt. The risk of such concentration was compounded by frequent trading in the PR Bonds because of the repeated payment of upfront costs that would decrease any investment returns,” FINRA said in its complaint. The investors in the Next case lost more than $4 million from their Puerto Rican bond investments.

A former Merrill Lynch adviser, Charles Doraine, recently lost a $35 million arbitration case seeking damages for libel, that was later withdrawn. A Financial Industry Regulatory Authority (FINRA) arbitration panel found the withdrawn complaint was based on misinformation. Some claim Merrill Lynch solicited the complaint from the client, as evidenced by two emails from the client. Doraine sought damages for tortious interference with prospective relations, intentional infliction of emotional distress, libel and conspiracy. The panel ruled that the customer had no personal knowledge of the allegations that she made, ruled the panel.

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