FINRA’s Department of Enforcement investigated Thomas and alleged he wrote 20 renter’s insurance policies for fictitious customers between January and October 2014. FINRA alleged the purpose of these insurance policies was to meet Thomas’ quarterly production goals and remain on an agent subsidy program. In total, Thomas caused the insurance company to pay $24,529 in unwarranted subsidy payments that would not have been paid out if not for the fictitious policies.
Based upon the foregoing misconduct, FINRA alleged Thomas violated FINRA Rules 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’” Here, Thomas submitted fictitious insurance policies for the sole purpose of garnering subsidy payments that he was not entitled to receive.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Thomas while employed by Farmers Financial, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.