FINRA Bars Corpus Christi Broker Charles Doraine: Puerto Rico Bonds
Former Next Financial Group broker Charles Doraine (CRD# 70411) was recently sanctioned by the Financial Industry Regulatory Authority in connection to allegations of unsuitable trading of mutual funds and Puerto Rico municipal bonds. Formerly associated with firm’s office in Corpus Christi, Texas, he was barred from associating with FINRA firms.
According to a Letter of Acceptance, Waiver, and Consent (No. 2018059323201) dated April 2020, Charles Doraine was associated with Next Financial Group as a General Securities Representative from 2007 until his voluntary departure in September 2019. FINRA subsequently initiated “an investigation into whether Doraine had made unsuitable recommendations to customers” that led to short-term mutual fund share trading, short-term Puerto Rico municipal bond trading, and an over-concentration of Puerto Rico municipal bonds in his customers’ accounts. During this investigation, FINRA sent him a request to appear before FINRA on May 5, 2020 and provide on-the-record testimony concerning the matters under its investigation. He indicated via an email from counsel on April 22, 2020 that he would not appear for the requested testimony “at any time.” FINRA found that this refusal violated FINRA Rules 8210 and 2010. As a result of the foregoing alleged conduct, he was barred from associating with any FINRA member firm in all capacities.
His BrokerCheck report also lists several recent customer complaints against him. A 2018 complaint alleged that as a representative of Next Financial Group, he excessively traded bonds and mutual funds, and recommended an unsuitable concentration in Puerto Rico bonds; the complaint reached a settlement of $3,050,000. Another 2018 complaint alleged that as a representative of Next Financial Group, he made unsuitable “in and out mutual fund trades”; the complaint reached a settlement of $375,000. A pending 2019 complaint alleges that while at Next Financial, he made improper mutual fund switches, recommended and sold unsuitable variable annuity products, and “took advantage of the diminished capacity of one of the claimants”; the complaint alleges damages of $500,000.
Charles Doraine is currently not registered as a broker. His previous registrations include Next Financial Group in Corpus Christi, Texas and Merrill Lynch in Corpus Christi, Texas. He has passed five securities industry qualifying examinations and his BrokerCheck report lists zero state securities licenses. (Information current as of May 29, 2020.)