BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
- Regulatory Sanctions
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Registered Principal Fined, Suspended for Using and Altering Pre-Signed Customer Documents
by Howard Haykin
Jeffrey Smith agreed to pay a $5K fine and serve a 3-month suspension to settle FINRA charges that he maintained and used pre-signed and altered forms.
FINRA FINDINGS. Smith, a broker with 22 years’ experience with 5 firms, held 3 principal/supervisory licenses - Series 53 (Muni Bonds); 24 (General Securities); and, Series 8 (General Securities Sales). Over a 3-year period, Smith maintained and utilized pre-signed and altered forms. Specifically, he had 3 customers sign blank forms and made additional photocopies of some of the blank-signed forms so that he could re-use the customers' signatures.
At times, Smith utilized the blank-signed forms to effect transactions authorized by the clients. On another occasion, Smith, with the client's authorization, submitted an altered, pre-signed form upon which correction fluid had been used to white out and correct an inaccurate bank account number. These actions caused his member firm to have inaccurate books and records
FINRA SANCTIONS. On first blush, Smith's 3-month suspension seemed a tad harsh. However, here's what FINRA took into consideration: (i) four years earlier, Smith settled FINRA charges that he failed to effectively supervise the activities of associated persons; (ii) Smith's “copying and pasting” spanned a 3-year period; and, (iii) Smith altered information on a document on at least on one occasion.
This case addressed in this article was reported in FINRA Disciplinary Actions for November 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2012033566202.