May 6, 2020
On April 24, 2020, former general securities representative Charles Doraine submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) Department of Enforcement agreeing to a bar from associating with member firms for refusing to appear for on-the-record testimony.
According to his FINRA BrokerCheck report, Doraine was associated with two FINRA member firms in Corpus Christi, Texas since obtaining his securities license in 1978. Doraine was associated with Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch) from December 1972 to March 2007 and Next Financial Group, Inc. from March 2007 to September 2019. Shortly after leaving Merrill Lynch, FINRA issued an AWC that ordered Doraine be suspended for five business days and fined $5,000 for effecting approximately 144 trades in a customer’s account through a third party that was not authorized in writing to trade the account.
In April 22, 2020, FINRA Department of Enforcement sent Doraine’s counsel a request that Doraine appear for on-the-record testimony in relation to an ongoing investigation. FINRA was investigating allegations that Doraine made unsuitable recommendations to customers that resulted in: short-term trading in mutual fund A shares and Puerto Rican municipal bonds and overconcentration of customer accounts in Puerto Rican municipal bonds. In an email his counsel sent to FINRA staff, Doraine acknowledged the request to appear for testimony and stated that he would not comply with this request at any time.
By signing the AWC, Charles Doraine consented, without admitting or denying the allegations made against him, to a bar from associating with any FINRA member firm in any capacity. FINRA Department of Enforcement approved the AWC on April 27, 2020.