#texas - Law Offices of Robert Wayne Pearce

Nov 12, 2020

Former NEXT Stockbroker Charles Lawrence Doraine Barred for Misconduct

Charles Lawrence Doraine of Corpus Christi, Texas submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for allegedly refusing to provide information and appear for on-the-record testimony in violation of FINRA Rules 8210 and 2010. In March 2007, Charles Lawrence Doraine joined NEXT Financial Group, Inc. as a General Securities Representative. FINRA stated that in September 2019, NEXT filed a Form U5 disclosing Doraine’s voluntary termination. According to the findings, FINRA began an investigation shortly after regarding Doraine’s suspected unsuitable recommendations in several customer’s accounts. The findings stated that the recommendations had resulted in short-term trading in mutual fund shares, municipal bonds, and overconcentration in Puerto Rico municipal bonds. In connection with the investigation, FINRA sent out a request to Doraine to provide and appear for on-the-record testimony in which he allegedly acknowledged but ultimately refused. Charles Lawrence Doraine is no longer associated with any FINRA member firm but remains under FINRA’s jurisdiction. FINRA Rule 8210 states, in relevant part, that FINRA has the right to require a “person subject to FINRA’s jurisdiction to provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation, complaint, examination or proceeding.” FINRA Rule 8210 also specifies that “no person shall fail to provide information . . . pursuant to this Rule.” A failure to provide information and/or documents requested by FINRA pursuant to Rule 8210 violates Rule 8210. Conduct that violates FINRA Rule 8210 also violates FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” Without admitting or denying FINRA findings, Charles Lawrence Doraine was barred from association with any FINRA member in all capacities. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like NEXT, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct. Have you suffered losses in your NEXT account due to misconduct by your broker? Was Charles Lawrence Doraine your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against NEXT stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

Nov 11, 2020

State Farm VP Management Stockbroker Steven Todd Gary Suspended for Falsifying and Forging Documents

Steven Todd Gary of Burleson, Texas submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly forging signatures and falsifying documents in violation of FINRA Rule 2010. From March 1998 until October 2018, Steven Todd Gary was registered as an Investment Company and Variable Contracts Products Limited Representative with State Farm VP Management Corp. According to the FINRA findings, State Farm filed a Form U5 disclosing that he had been terminated for not following internal processes in connection with life insurance policies. During the relevant period, the findings stated that Gary allegedly forged his parents’ signature on 60 checks totaling $332,650, provided three falsified and backdated power of attorney forms, and impersonated his father during three calls with his life insurance company. The FINRA findings stated that Gary created, backdated, and provided the insurance company with the falsified power of attorney forms during an investigation into his forgery. In addition, FINRA stated that Gary allegedly had his employees sign witness certifications that falsely attested the forms had been executed on the dates provided. FINRA Rule 2010 requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. Rule 2010 articulates a broad ethical principle that applies to business-related conduct. Forgery, falsifying documents and providing false information to a FINRA regulated broker dealer is a violation of FINRA Rule 2010. Without admitting or denying FINRA’s findings, Steven Todd Gary was assessed a deferred fine of $12,500 and suspended from association with any FINRA member in all capacities for one year. The suspension is in effect from May 4, 2020, through May 3, 2021. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like State Farm VP Management, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct. Have you suffered losses in your State Farm VP Management account due to misconduct by your broker? Was Steven Todd Gary your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against State Farm VP Management stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.