Investor Alert! The Securities and Exchange Commission (“SEC”) barred LPL Financial securities broker Dain Farrell Stokes (CRD#: 2960801, Bedford, New Hampshire). These sanctions come after the New Hampshire Department of State Bureau of Securities Regulation suspended his licenses and issued him a fine for seemingly misappropriating investor funds and misrepresenting to investors that their money would go towards Africa-based investment projects involving Bill Gates and Taylor Swift. Not only that, but five clients brought disputes involving the securities broker, who worked for LPL Financial from 2009 to 2019 when it disaffiliated with Stokes because of New Hampshire’s enforcement action. Here’s more:
SEC Bars Dain Stokes As Securities Broker
Notably, The Commission’s Order resulted in Dain Stokes’ bar from association with, among other things, a broker, dealer, investment adviser, municipal securities dealer and municipal advisor effective June 25, 2020. Apparently, the Commission did this because of New Hampshire Bureau of Securities Regulation’s Order from August 2019. Notably, for Stokes’ alleged misappropriation, the Bureau ordered him to cease and desist further violations of securities laws in New Hampshire. In addition to New Hampshire suspending his investment advisor agent and his broker-dealer representative licenses, it made him pay restitution of more than $200,000 along with a $20,000 fine.
Stokes Reportedly Misappropriated $576,000 From LPL Clients
Supposedly, in 2018 and 2019, Dain Stokes solicited $576,000 from three LPL clients. The Africa project investment was represented by Stokes as making 20% returns in 90 days. It appears that Stokes convinced investors to give him funds after he claimed to be working directly with Taylor Swift regarding the financing of Africa projects. Apparently, Stokes secured investors’ funds through executing unsecured promissory notes in which he failed to meet the terms of repayment.
Evidently, Dain Stokes never made investments in the Africa project. Instead, the securities broker reportedly used investor money for personal expenses and to pay numerous other entities and individuals throughout the United States. Apparently Stokes deceived these LPL Financial investors and made false statements about the use of their money.
FINRA Bars Stokes For Not Responding To Requests
Effective December 30, 2019, the Financial industry Regulatory Authority (“FINRA”) barred Dain Stokes as a securities broker. Namely, the financial industry watchdog sent Stokes a request for information but received no response from him. After suspending Stokes in October 2019, FINRA automatically barred him for his failure to request termination of his suspension.
LPL Financial Client Indicates That Dain Stokes Misappropriated Funds
Evidently, a client of LPL Financial filed a dispute about Dain Stokes via a March 18, 2020 complaint. Namely, the client contended that after making purported purchases of CDs and bonds, Stokes misappropriated the client’s funds. For this reason, the client demanded compensatory relief in this ongoing matter.
Stokes Allegedly Sells Bad Variable Annuity To Client
Apparently, an LPL Financial client contested Dain Stokes’ actions through an October 7, 2019 dispute. Namely, the client suggested that Stokes misrepresented an annuity. Not only that, but the client suggested that Stokes sold unsuitable investments. It seems that the securities broker may have overlooked the client’s risk tolerance, investment objectives and other suitability criteria. Because of this, the client asked for compensation from LPL Financial or Stokes. As of July 14, 2020, this matter is unresolved.
Losses From LPL Financial Broker Dain Stokes?
Have you experienced losses by investing with LPL Financial’s Dain Stokes? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and financial advisors.