Broker Dain Farrell Stokes – Complaints & Compensation

Potential Customer Claims Against Dain Farrell Stokes, Former LPL Broker and Investment Advisor

Dain Farrell Stokes is a previously registered broker and investment advisor who worked for four different firms before being barred by both FINRA and the SEC. According to FINRA’S BrokerCheck, Stokes is named in three regulatory finals and one employment separation after allegations. Client allegations against Stokes include suitability issues, recommending unsuitable variable annuities, and defrauding customers.

Mr. Stokes was associated with the following firms:

  1. 6/2009 - 9/2019: LPL Financial LLC in Bedford, NH
  2. 5/2000 – 6/2009: Edward Jones in Manchester, NH
  3. 3/1998 – 5/2000: IDS Life Insurance Company in Minneapolis, MN
  4. 3/1998 – 5/2000: American Express Financial Advisors, Inc. in Minneapolis, MN

Stokes has a handful of denied customer complains include customers alleging they did not receive confirmation of trades, customers claiming that Mr. Stokes told them that their funds “could be put to better use,” and that Mr. Stokes failed to advise the client about the tax consequences of transactions. Customers should understand that even if a firm “denies” a claim, they may still have a right to file a claim to recover their investment losses even if the firm denies liability.

In August 2019, one of Mr. Stokes’ clients filed a police report alleging fraud relating to a $201,000 investment project that Stokes classified as “confidential.” The Client provided copies of cancelled checks, unsecured promissory notes, and text messages to the police department, all that corroborated the complaint. On three separate occasions, the client wrote checks payable to Mr. Stokes, whom the client believed to be in charge of the “financial end of things” relating to the confidential investments, and in return Mr. Stokes executed unsecured promissory notes promising returns. The New Hampshire Department of State Bureau of Securities Regulation found that Stokes had violated FINRA rule 3240 by borrowing $201,000 from his client. On August 29, 2019, a Notice of Order was executed ordering the suspension and a cease and desist against Mr. Stokes. Mr. Stokes was discharged from LPL Financial LLC following the sanctions.

Following his suspension and failure to respond to FINRA, the regulatory authority barred Mr. Stokes in all capacities from associating with any FINRA member in any capacity.

Mr. Stokes was given a regulatory final from the Securities Exchange Commission in June 2020, barring him from associating with a broker, dealer, investment advisor, etc. indefinitely. This was in connection to the 2018 regulatory action and findings that between 2018 and 2019, Stokes solicited $576,000 in investor funds from three long-term LPL investors. Stokes falsely states to the investors that their funds would be invested in a lucrative investment project in Africa that earned a return of 20% in 90 days. It was alleged that Stokes did not use the money for any investment, and instead misappropriated portions of the funds for personal expenses while sending the rest to various entities all over the United States.

If you were a client of Dain Stokes and suffered losses, had any money improperly withdrawn or misappropriated, or received bad or unsuitable investment advice, you may have a legal right to assert a claim to recover damages.

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