A former advisor with Pruco Securities has been accused of violations involving the forging of customer signatures, Financial Advisor reports.
The Financial Industry Regulatory Authority filed a complaint against Avinesh K. Shankar of Roseville, California, alleging that he forged electronic signatures on 115 annuity applications for 64 customers. FINRA stated that Shankar received advance payment commissions of over $500,000 even though the annuities were never funded. The authority is seeking monetary sanctions for his actions.
According to the complaint, Shankar forged the signatures without the customers’ prior knowledge or consent between November 2022 and January 2024 while registered with Pruco Securities.
Shankar was fired in 2024 by Pruco, the broker-dealer subsidiary of Prudential. A Form U5 stated that he had been terminated for “submit[ting] numerous annuity applications containing inaccurate information and non-genuine electronic customer signatures for over 30 different customers resulting in his receipt of commissions to which he was not otherwise entitled, which were recaptured by the Company on multiple occasions.”
By forging customer signatures, converting funds and receiving commissions to which he was not entitled, Shankar was found to be in violation of FINRA Rule 2010, which requires broker-dealers to observe high standards of commercial honor and just and equitable principles of trade.
Shankar allegedly signed customers names on the annuity applications using electronic signature software. “None of these customers had given Shankar permission to submit the applications or sign their names and were not aware that he was doing so,” the complaint said.
An appendix to the complaint listed the commissions received on the 115 annuities, almost 70 of which earned him between $4,700 and $5,000 per contract. When the annuity distributor reached out to Shankar about the annuities going unfunded, Shankar was said to have “provided false explanations.”
When the annuities went unfunded for 90 days after Shankar allegedly submitted them, Pruco tried to recoup the advanced commissions by deducting them from his next paycheck and carrying over the balance to Shankar’s next paycheck when the first one didn’t fully cover the commissions. When he left, he still owed the firm almost $164,000, the complaint said.
According to FINRA, Pruco approached Shankar about the annuity applications, and he “eventually admitted” that he’d forged the signatures to earn commissions.
Shankar could not be reached for comment by Financial Advisor. But he did respond to the allegations in BrokerCheck at the time of his Form U5 termination.
“No client funds were ever taken without the client’s consent or awareness,” he wrote. “The applications were solely submitted to secure client’s rates only in case they wished to proceed with business. If clients chose not to do business, Prudential reversed the advanced commissions that were paid to me. The outstanding advanced commissions are currently being paid back to Prudential. Over 61% of the commissions owed have been repaid, and the remaining balance is arranged on a payment plan set up by Prudential.”
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665 0784 or through our online contact form for a no-cost evaluation of your matter.
