Charles Dorraine Barred For Refusing To Testify About Puerto Rico Bonds

Broker Charles Dorraine (CRD# 70411) has been barred by FINRA (the Financial Industry Regulatory Authority) for refusing to give testimony about recommendations to customers about Puerto Rican bonds. It has been alleged that the bonds were unsuitable and customers were overconcentrated in them. Dorraine was last registered with Next Financial Group, Inc. (CRD# 46214) in their Corpus Christi, Texas branch location from 2007-2019.

Silver Law Group Recovers Puerto Rico Bond Losses

Silver Law Group has represented investors in claims against UBS and other brokerage firms relating to the sale and concentration of portfolios in Puerto Rican municipal bonds. It is alleged that brokers recommended Puerto Rico bonds due to the high rate of return without disclosing to investors the risks associated with the Puerto Rican economy and the recession on the island at the time.

Many elderly and conservative investors lost significant amounts of money when the Puerto Rico municipal bonds cratered in value, causing some to lose all their retirement savings.

Silver Law Group’s securities arbitration claims to recover losses in Puerto Rico municipal bonds allege that the brokerage firms misled investors about the risks of the bonds, overconcentrated their portfolio, breach of fiduciary duty, and excessive trading.

Charles Dorraine Disclosures

Charles Dorraine has been in the securities industry since 1972. Before working for Next Financial Group, he worked for Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691). He has 9 disclosures on his publicly-available BrokerCheck report:

April, 2020: FINRA indefinitely barred Dorraine from associating with a FINRA member firm in all capacities, after he“refused to provide on-the-record testimony requested by FINRA in connection with its investigation of his suspected unsuitable recommendations of short-term trading in mutual fund A shares, short-term trading of Puerto Rican municipal bonds, and overconcentration of customer accounts in Puerto Rican municipal bonds.” Doraine consented to the sanction and to the entry of findings without admitting or denying them.

September, 2019: A customer dispute alleged that Dorraine “engaged in improper mutual fund switches, recommended and sold unsuitable variable annuities, and took advantage of the diminished capacity of one of the claimants.” $500,000 in damages were requested and the claim is pending as of this writing.

September, 2018: A customer dispute alleged that Dorraine “excessively traded bonds and mutual funds and recommended an unsuitable concentration in Puerto Rican bonds.” $10,000,000 in damages were requested. The claim was settled for $3,05,000.

May, 2018: A customer dispute alleged that Dorraine “made in and out mutual fund trades that were unsuitable for a low risk tolerance account.” $2,500,000 in damages were requested. The claim was settled for $375,000.

May, 2007: Charles Dorraine was fined $5,000 and temporarily suspended for effecting trades in a customer’s account “pursuant to instructions from a third party who, although verbally authorized to trade the account, was not authorized in writing to execute transactions on the account.”

June, 2005: A customer dispute alleged that Dorraine “made unauthorized trades, churned and made misrepresentations.” $2,348,000 in damages were requested. The claim was settled for $400,000.

August, 2001: An allegation alleged churning and unsuitable trading and requested $1,722,485 in damages. The case was settled for $350,000.

September, 1989: A customer alleged unauthorized and unsuitable transactions and requested $265,000 in damages. The dispute was settled for $100,000.

June, 1989: A customer dispute alleged unsuitable, inappropriate investments and was settled for $53,000.

Did You Invest With Charles Dorraine Or Next Financial Group?

If you have investment losses with Charles Dorraine or Next Financial Group, please contact Scott Silver of the Silver Law Group at ssilver@silverlaw.com or toll free at (800) 975-4345 for a no-cost consultation to discuss options to recover your losses.

Silver Law Group represents investors in securities and investment fraud cases, including stockbroker misconduct and unsuitable investments. Most cases are handled on a contingency fee basis, meaning nothing is owed unless we recover money for you. Contact us today.