The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Charles Doraine. According to his publicly available FINRA BrokerCheck report, Charles Doraine has been the subject of multiple customer disputes throughout his career.

Charles Doraine is a Texas based securities broker. He has worked in the securities industry for forty-five years. During his career he has been registered with just two different securities firms.

His Registrations

  • Merrill Lynch (1972-2007)
  • Next Financial Group (2007-Present)

The Allegations

  • In June 1989, a customer alleged that Charles Doraine made unsuitable and inappropriate investments on their behalf. This case was settled for $53,000 in damages.
  • In September 1989, a customer alleged that Charles Doraine executed unauthorized and unsuitable transactions. This case was settled for $100,000 in damages.
  • In August 2001, an executor of a customer’s estate alleged that Charles Doraine churned the customer’s account and executed unsuitable transactions. This case was settled for $350,000 in damages.
  • In June 2005, customers alleged that Charles Doraine made unauthorized trades, churned their account, and made material misrepresentations concerning investments. This case was settled for $400,000 in damages.
  • In May 2018, a customer alleged that, between 2012 ad 2017, Charles Doraine made in and out mutual fund switches that were highly unsuitable for their low risk tolerance account. This case was settled for $375,000 in damages.
  • In September 2018, customers alleged that Charles Doraine excessively traded bonds and mutual funds as well as recommended that they concentrate an unsuitable amount of assets in Puerto Rican bonds. This case is currently pending. The customers are seeking $10 million in damages.

Unsuitable Investments

Securities brokers, like Charles Doraine, have an obligation to only recommend investments to customers they are suited for. They are able to determine if an investment is suitable for a particular customer by analyzing factors that include the customer’s financial situation, risk tolerance, liquidity needs, and investment objectives. By paying attention to these factors, brokers can determine if an investment will be suitable for the customer. When securities brokers do not conduct the necessary due diligence required to discern suitability, it can often result in losses.

Excessive Trading

Securities brokers, like Charles Doraine, are required to trade their customer’s accounts responsibly both in the securities they choose and the frequency in which they execute transactions. Securities brokers can sometimes trade a customer’s account so excessively that it results in absolutely no financial benefit to the customer as it often causes them to incur unnecessary fees and trading losses.

One of the main reasons that securities brokers engage in excessive trading is to generate additional income for themselves. This is because securities brokers receive a commission whenever they purchase a security on a customer’s behalf. When a securities broker excessively trades the account of their customer with the express purpose of generating additional commissions for themself, it is known as churning.

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 could 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 Doraine, 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.