SEC Bars Former LPL Advisor Over Fake African Charity
The Securities and Exchange Commission has barred former LPL Financial broker Dain Stokes, who was terminated by the broker-dealer last August.
The Securities and Exchange Commission has barred former LPL Financial broker Dain Stokes, who was terminated by the broker-dealer last August after the New Hampshire Bureau of Securities Regulation suspended his state securities license for his alleged role in a phony African charity project.
The regulators claimed that Stokes solicited at least two former LPL clients to invest a total of $576,000 in a supposed African charity project that included involvement from singer-songwriter Taylor Swift and billionaire Bill Gates. He also claimed that the investments would generate a 20 percent return.
In October, the New Hampshire regulators obtained a preliminary injunction and asset freeze after finding no evidence to support Stokes’ claims that the charity was credible.
The regulators accused Stokes of misappropriating investor funds by transferring the money to multiple people and entities across the country, while also paying for his personal expenses.
The state required Stokes to cease and desist from further violations of state securities laws, pay restitution of $576,000, pay an administrative fine of $20,000, and pay the cost of the investigation.
According to his BrokerCheck profile, Stokes spent the last decade with LPL, and before that, was affiliated with Edward Jones for nine years.
