A broker has been penalized by the Financial Industry Regulatory Authority over violations involving forgery and falsification, reports Think Advisor.
Richard Dean Connally was fined $7,500 and suspended for one year for actions that took place from at least November 2007 through September 2022, while working both as a registered representative for FBL Marketing Services LLC, and as an insurance agent for an affiliated life insurance company.
It was determined that Connally forged or falsified customer signatures on hundreds of insurance account documents in violation of NASD Rule 2110 and FINRA Rule 2010. Those rules require associated persons to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
FINRA said the transactions and services requested in these documents were authorized by the customers, and none of the customers complained. But Connally also falsely attested on at least three annual compliance questionnaires that he complied with the firm’s policy prohibiting him from signing a customer’s name to any document.
According to FINRA, “Forgery occurs when one person signs another person’s name or initials on a document
without the other person’s prior permission. Falsification occurs when a person creates a document that creates a false appearance by including altered or untrue information. Signing or affixing another person’s name to a document with the other person’s prior permission but without indicating that it is being done on someone else’s behalf is falsification.”
Connally accepted and consented to the findings by FINRA without admitting or denying them.
The attorneys at Hyman Cotter PC include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. Our attorneys fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. If your firm is facing an investigation from a regulatory agency, please contact Hyman Cotter PC at 312-291-4600 or through our online contact form.
