Dain Stokes Barred After Misappropriation Allegations And SEC Actions

Dain Stokes (CRD: #2960801) is a former registered broker and investment advisor whose last known employer was LPL Financial LLC (CRD#:6413) of Bedford, NH. His previous employers include Edward Jones (CRD#:250) of Manchester, NH, American Express Financial Advisors Inc. (CRD#:6363) and IDS Life Insurance Company (CRD#:6321), both of Minneapolis, MN. He has been in the industry since 1998.

On 3/18/2020, a client filed a dispute alleging “misappropriation of funds,” and requesting damages of $375,000. This claim was settled, but no additional information is available.

A previous dispute filed on 10/7/2019 with allegations of “suitability issues through misrepresentation and poor advice” is still pending.

Dain Stokes has three regulatory disclosures: one from FINRA, one from the Securities and Exchange Commission (SEC), and one from the New Hampshire Department of State Bureau of Securities Regulation. These disclosures are as follows:

1. 8/1/2019: New Hampshire’s Securities office was notified that a client of Stokes’ had filed a police report alleging fraud in the amount of $201,000 for an investment project. Stokes approached the client for an “outside project,” referred to it as “confidential,” and claimed to be on the “financial end of the project.” The client provided evidence to support his claim, including unsecured promissory notes for the solicited funds. On 8/26/2019, the agency issued a cease and desist order, (In the Matter of Dain F. Stokes, No. I-201900029) suspended his license, issued an order for restitution to the client for $201,000 along with legal interest, and pay an administrative fine of $20,000 as well as hearing and investigative costs to the agency.
2. 9/27/2019: Stokes failed to respond to a request for information from FINRA. The agency barred him indefinitely from association with any FINRA member, beginning on 12/30/2019.
3. 6/25/2020: The Securities and Exchange Commission (SEC) also indefinitely barred Stokes from several registration capacities after the New Hampshire investigation and the discovery that he solicited funds for an alleged “African charity” from three individuals. In its petition, the SEC showed that Stokes used the collected funds from these investors for personal expenses and to send to persons and entities throughout the US.

LPL Financial discharged Stokes after the State of New Hampshire suspended both his broker and investment advisor licenses on 8/28/2019. Additionally, Stokes mentioned his false “African charity” on social media, claiming that singer Taylor Swift was personally involved with the project when she actually wasn’t.

Have You Invested With Dain Stokes?

Financial advisors stealing money from clients is a growing problem. Stockbrokers are prohibited from borrowing or taking money from clients. Unfortunately, this is a growing problem and we frequently receive client calls asking the question “can my stockbroker take money from money account without my permission”. Under FINRA rules and SEC guidance, taking money from a client is a serious offense. Our attorney’s have recovered money from brokerage firms which fail to prevent theft of client funds, Ponzi schemes and elder financial frauds.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.