Local retireees win $191,590.35 arbitration award - update

CHIPLEY — Three local retirees have been awarded $191,590.35 by an arbitration panel after the panel found that Robert Dokken, a Panama City financial advisor, defrauded the three plaintiffs according to a news release from the law firm of Goodman & Nekvasil, PA of Clearwater dated March 9. The arbitration was awarded March 5.

Dokken and his attorney told the Panama City News-Herald Tuesday they would appeal the ruling and that Dokken, because of poor representation from another attorney, did not get to tell his side.

According to the news release David and Judith Solger responded to a television ad and attended a financial planning class run by Dokken. The Solgers and a neighbor, Jimmy Ackerman, whom they referred to Dokken were lured into investing $100,000 and $75,000 respectively into investing in Resort Holding International, that was described as a "Ponzi scheme" in the news release.

RHI was described in the news release as an unregistered security, a real estate time share in Cancun, Mexico. RHI collapsed and the Solgers and Ackewrman lost their entire investment.

The arbitration panel found that:

•Fraudulent acts committed by Dokken included owner Robert J. Dokken, Jr. failing to list his wife as sales agent on the purchasing document

•Failing to disclose the 12 percent commission paid on the investments

•Failure to conduct basic rersearch into RHI. The firm's owner had numerous cease and desist orders issued against him in other states and proper research would have discovered that

The panel found that Dokken's actions constituted "intentional misconduct" and warranted awarding punitive damages for the plaintiffs. Sanctions were also awarded against Dokken for his conduct during the arbitration proceedings and attorney's fees to the plaintiffs to be determined by a court of law.

David Solger said Tuesday evening that the story began in 2002 when he, his wife and Ackerman were first involved with Dokken. They heard Dokken's ads on television and radio and he sounded very knowledgeable, Solger said.

Solger later found out that Dokken did not even have a license to handle securities. The plaintiffs went through a long search before finding Goodman & Nekvasil to represent them.

Solger said the arbitration panel was set up originally through NADS and finally through the Financial Industry Regulatory Authority

FINRA is the largest independent regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 4,750 brokerage firms, about 167,000 branch offices and approximately 634,000 registered securities representatives.

Created in July 2007 through the consolidation of the National Association of Securities Dealers and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.

A three-person panel heard the case, Solger said.

Solger said he expects further legal action on the case.

Nekvasil called it "a long and frustrating road to justice for my clients" in the news release. "My clients are constantly exposed to a barrage of television and radio ads by Dokken," as well as a local financial column, financial advice shows on television and other advertisement.

"Knowing that Dokken defrauded them and being constantly exposed to his advertising while waiting for justice has been a bitter pill for my clients to swallow."

The News-Herald reported that on Tuesday, Dokken and his attorney, Mike Reiter, said the allegations are false, Dokken was not allowed to tell his side of the story at the arbitration, they plan to appeal the finding in federal court and they are considering other legal action.

Reiter said Dokken was not well represented and fired his first attorney shortly before the arbitration began. However, the panel did not allow him a continuance to get a new attorney and because of other legal issues did not allow him to testify or call witnesses on his own behalf.

“Mr. Dokken has been in the business as a broker for over 20 years and these are the only complaints he’s ever had,” Reiter said. “Mr. Dokken does not think that there are any factual allegations in here.”

In an interview with The News Herald, Nekvasil said Dokken was sanctioned by the panel for discovery misconduct and the panel did impose limitations on his ability to testify. However, Dokken was allowed to cross examine witnesses and did give “sworn testimony,” in which he admitted to wrongdoing, Nekvasil said. He added that any appeal of the panel’s decision or other legal action would be “frivolous.”

“Mr. Dokken vehemently denies the accuracy of the panel’s decision,” Reiter said. “He did nothing untoward or irresponsible to these claimants. He’s been sitting quietly and patiently through this whole process hoping that he would have his say. … He doesn’t think that this is reflective of America’s justice system.”