Charles Albert Dixon Allegedly Exercises Discretion Without Proper Authorization

The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Charles Albert Dixon. According to his publicly available FINRA BrokerCheck report, Charles Albert Dixon has been the subject of multiple complaints.

Charles Albert Dixon Jr. was a Texas based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with five different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

• Blinder, Robinson & Co., Fidelity Brokerage Services (1987-1988)


• Lehman Brothers Inc. (1988-1994)


• Painewebber Incorporated (1994-1999)


• Morgan Stanley (1999-2017)

The Allegations

• In May 2006, a customer alleged that Charles Albert Dixon churned her accounts and made highly unsuitable investment recommendations. This case was settled for $99,900 in damages.


• In October 2016, a customer alleged that Charles Albert Dixon executed unauthorized trades. This case was settled for $225,000 in damages. He was terminated from his position at Morgan Stanley following these allegations.


• In January 2018, Charles Albert Dixon was officially sanctioned by FINRA. The findings in this matter state that he failed to comply with a FINRA investigation into the above mentioned complaint regarding his use of discretion. Due to this alleged failure, Charles Albert Dixon was barred from acting as a securities broker in any fashion.

What Does This Mean?

There is a common misconception among casual investors that hiring a securities broker essentially means forfeiting control over your account. This is most certainly not the case. Securities brokers are required to obtain an investor's authorization before executing a trade on their behalf. The trading practice known as discretion allows securities brokers the opportunity to execute trades in the account of a specific customer without having to obtain authorization prior to every trade. However, before a broker can begin engaging in this practice, they must first obtain express written authorization from the account holder. Verbal, or implied, authorization is not sufficient. This is because discretion can be a very slippery slope, and investors need to be completely certain about what it is they are agreeing to. Discretion provides securities brokers with ample opportunity to trade an investor's account unsuitably. This includes placing them in securities they are not financially suited for, or executing transactions in their account more frequently than is suitable. Both of these acts can prove detrimental to investors.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Charles Albert Dixon, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.