National Investment Fraud Lawyers

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Victim of Investment Fraud with LPL Financial LLC Broker Dain Stokes?

Posted on Tuesday, December 3rd, 2019 at 8:48 pm    

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Erez Law is currently investigating LPL Financial LLC broker Dain Stokes (CRD# 2960801) regarding investment fraud. Stokes was registered with LPL Financial LLC in Bedford, New Hampshire from 2009 to 2019, when he was terminated regarding, “Termination in connection with State of NH suspension of investment adviser agent and broker-dealer representative license.”

In October 2019, FINRA indefinitely suspended Stokes after he failed to respond to FINRA request for information. According to his BrokerCheck profile, “If Stokes fails to request termination of the suspension within three months of the date of the Notice of Suspension, he will automatically be barred on December 30, 2019 from association with any FINRA member in all capacities pursuant to FINRA Rule 9552(h).”

In August 2019, the New Hampshire Department of State Bureau of Securities Regulation suspended Stokes and sanctioned him to a $20,000 civil and administrative penalty and fine as well as $201,000 in restitution. According to his BrokerCheck, “On August 1, 2019, a client of the Representative filed a police report alleging fraud related to a $201,000.00 investment project that Representative classified as confidential. Client provided copies of cancelled checks, unsecured promissory notes, and text messages to the Policy Department that corroborated the complaint. According to the police report, Representative approached client for an investment in an ‘outside project’ where the Representative was in charge of the ‘financial end of the project’. On three occasions, client wrote checks payable to Representative who in return executed unsecured promissory notes promising returns. Upon information and belief, Representative did not utilize the monies invested by client as intended.”

Stokes has been the subject of four customer complaints between 2003 and 2019, three of which were denied, according to his CRD report:

October 2019. “Customer alleges suitability issues through misrepresentation and poor advice.” The case is currently pending. This complaint is regarding a variable annuity.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, LPL Financial LLC may be liable for investment or other losses suffered by Stokes’ customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.