Veteran Broker Suspended for Forging Client Initials and Signature

Mark J. Hudec, formerly with Gradient Securities, LLC, agreed to a three-month suspension and a $5,000 fine under a Letter of Acceptance, Waiver, and Consent (AWC) with FINRA. According to FINRA, between September and October 2025, Hudec forged the initials of three customers on brokerage account opening forms. He also forged the signature of a fourth customer on an advisory account form, in violation of FINRA Rule 2010. Hudec consented to FINRA's findings without admitting or denying them.

Hudec entered the securities industry in 1986. In August 2025, he became registered as a General Securities Principal and General Securities Representative with Gradient Securities, LLC. About two months later, on October 8, 2025, Gradient filed a Form U5 disclosing that it permitted Hudec to resign for "initial[ing] a document on behalf of a client." Hudec was not associated with any FINRA member firm at the time of the AWC.

FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade. FINRA treats forgery, which means signing another person's name or initials on a document without that person's prior permission, as a violation of Rule 2010, even when no customer loses money. For example, a broker would violate this rule by signing a client's name on an account transfer form to save time, or by initialing changes to a client's paperwork without first getting the client's approval.

According to FINRA, after Hudec joined Gradient, he sent account opening forms to three customers, who partially completed and signed them. When the firm rejected the forms for missing information, Hudec allegedly added the information himself, wrote the customers' initials next to the changes without their permission, and resubmitted the forms. In October 2025, Hudec allegedly signed a fourth customer's name, without permission, on a form required to open an investment advisory account. That form included the customer's acknowledgment of receiving information about fees and expenses and of considering the costs and benefits of an advisory account. FINRA noted that none of the customers complained.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.

The content on this site reflects personal opinions and does not constitute statements of fact. No findings have been made against the firms or individuals mentioned. This blog is intended solely for educational purposes, drawing on publicly available information to provide general insights and a basic understanding of the law. It is not a substitute for legal advice.