Douglas Blake Fined by FINRA Following Commision Abuse Allegations
Douglas Blake (CRD #: 4715268) has been suspended and fined by FINRA. This disclosure appears on his BrokerCheck record, accessed on September 1, 2023. For more details concerning his excessive trading allegations, keep reading.
On June 29, 2023, Douglas Blake entered into an Acceptance, Waiver, and Consent agreement in which he consented to the findings that he violated FINRA Rule 2111 when he excessively traded in two customer’s accounts.
- Customer A is 71 years old. Douglas Blake’s trading recommendations allegedly resulted in a cost-to-equity ratio of 26 percent. FINRA considers a cost-to-equity ratio above 20 percent to be generally indicative of excessive trading. A cost-to-equity ratio of 26 percent means the account value would have to grow by 26 percent just to break even. Customer A allegedly paid $16,593 in commissions and fees.
- Customers B and C are a married couple in their 60s. Douglas Blake’s alleged trading resulted in a cost-to-equity ratio of 29.25 percent. Customers B and C allegedly paid $11,029 in commissions and fees.
FINRA Rule 2111 – Excessive Trading
FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must be suitable. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor.
Sanctions
As part of the terms of the AWC, Douglas Blake consented to a $10,000 fine and a restitution payment of $27,622. He also consented to a four-month suspension.
You can read a copy of his AWC here.
Prior Commission Abuse Allegations
On April 22, 2016, an investor alleged that Douglas Blake charged unreasonable commissions over a three-year period. The investor alleged that Douglas Blake failed to disclose the risks associated with certain investments.
The investor sought $400,000 and the dispute settled for $90,000.
Tax Liens
Douglas Blake is the subject of over $1.6 million in tax liens.
Background Information
Douglas Blake has passed the following exams:
- Series 65 Uniform Investment Adviser Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
He has registered with the following firms:
- Kingswood Capital Partners (CRD #: 288898)
- Benchmark Investments (CRD #: 103792)
- Cape Securities (CRD #: 7072)
- Newbridge Securities Corporation (CRD #: 104065)
- Investors Capital Corp (CRD #: 30613)
- J.P. Turner & Company (CRD #: 43177)
- E1 Asset Management (CRD #: 46872)
Kurta Law Can Help
If you worked with Douglas Blake and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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