April 2021- Corpus Christi, Texas
The FINRA records of Charles L. Doraine , a former stock broker who was last employed by NEXT Financial Group , disclose 2 prior regulatory matters and 7 prior customer disputes.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 4/2020 FINRA permanently barred Doraine from the securities industry to resolve allegations that he failed to provide on the record testimony in connection with an investigation of his suspected unsuitable recommendations of short term trading in mutual fund A shares, short term trading and over concentration of Puerto Rican municipal bonds.
In FINRA Case 19-2841, a customer of NEXT Financial Group sought damages of $500,000 and alleged that during the period from 2012-2018 Doraine engaged in improper mutual fund switches, recommended unsuitable variable annuities and took advantage of the diminished capacity of one of the claimants. That case was settled in 12/2020 for $352,564.
In FINRA Case 18-03088, a customer of NEXT Financial Group sought damages of $10 million and alleged that during the period from 2012-2015 Doraine recommended an unsuitable concentration in Puerto Rican bonds and excessively traded bonds and mutual funds. That case was settled in 2/2020 for over $3 million.
In FINRA Case 18-1554, a customer of NEXT Financial alleged that from October 2012-2017 Doraine made in and out mutual fund trades that were unsuitable for a low risk tolerance account and sought damages of $2.5M. In December 2018 that case was settled for $375,000.
In NASD Case 05-2963, a customer of Doraine’s prior employer Merrill Lynch alleged that he made unauthorized trades and churned their account. That matter was settled for $400,000.
In NASD Case 01-6460 a customer of Merrill Lynch alleged churning and unsuitable recommendations and sought damages of $1.7 million. The case was settled for $350,000.
Doraine was employed by NEXT Financial Group from 3/2007-9/2019. He lists business affiliations with Doraine Wealth Management, Doraine Global Media, and KFP NE$T Egg.
Puerto Rico Debt Crisis
In early 2014, various credit rating agencies downgraded the debt of Puerto Rico to non investment grade, better known as junk status or speculative grade. This downgrade triggered acceleration clauses requiring the repayment of some debt within months, rather than years.
Puerto Rico has over $70 billion of outstanding debt, with a debt to GDP ratio of about 68%. While about $30 billion (42%) of Puerto Rico’s debt is owned by residents of Puerto Rico, the larger portion is owned by non-residents, primarily residents of the continental United States.
If you have losses in an account handled by Charles Doraine, call for a no charge consultation to learn about your options for recovery of damages.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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