FINRA’s Department of Enforcement investigated Smith and alleged he affixed the signatures of at least six different customers on various variable life insurance policies and fixed and variable annuities from July 2011 through October 2012. According to FINRA, Smith forged the signatures and initials on the documents in question without the customers’ knowledge or authorization. During the relevant time period, Pruco’s procedures prohibited firm employees from signing a customer’s signature with no exceptions. Nevertheless, Smith affixed the client signatures in direct contravention to firm procedures.
Smith’s alleged misconduct violated multiple FINRA Rules, including FINRA Rule 2010, which requires members to comply with “high standards of commercial honor and just and equitable principles of trade.” As a result, Smith was suspended for one (1) year and subject to a $5,000 fine.
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 have any questions regarding Smith’s misconduct, or if you believe that you have been a victim of securities and investment fraud including falsified documents, please complete our contact form or contact one of our attorneys at (800) 627-2179.