Churning and aggressive trading were two allegations leveled against the Vermont broker
In July of 2016, the Financial Industry Regulatory Authority (FINRA) sent a letter out to broker Paul Dorion letting him know that he was being suspended due to a number of allegations. Dorion had until October to supply FINRA with more information in order to terminate the suspension, but because he failed to do so, he is now barred permanently from conducting business with any FINRA member.
Over the course of his 32-year career, Dorion worked for three different brokerage firms. In 1983, he began with American Capital Financial Services, INC. before moving on to Nathan & Lewis Securities, INC. in New York City. In 1992, Dorion started working for LPL Financial LLC out of Killington, Vermont.
He was discharged from LPL Financial in 2015 due to several allegations, including unauthorized trading and a violation of the firm’s signature policy. Dorion also never responded to inquiries from LPL’s compliance department.
The reason Dorion was initially suspended by FINRA stemmed from one of his clients alleging that she lost $100,000 because of aggressive trading of low-priced equities, churning, and a failure to supervise. The client was eventually awarded about $75,000.
All brokerage firms are obligated to supervise all of their brokers and to ensure that they are in compliance with the established standards for handling customer accounts. Brokerage firms and the branch office manger are responsible for supervising training, customer communication, and client recommendations, among other things. A failure to supervise can result in a firm being liable for any malfeasance by one of their brokers.
To get more information about Paul Dorion and the allegations against him, you can read his BrokerCheck report, a complimentary service provided by FINRA.
If you trusted your investments to Paul Dorion, it is possible that his actions cost you money. To assess your situation and find out if you might be able to recover any of those funds, contact the Silver Law Group.
We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. One of our securities arbitration lawyers will talk to you about your situation and what the next steps involve. Because the Silver Law Group works on contingency, we get paid only if you do. Get in touch for a free consultation.