FINRA Suspends Broker for Impersonating Customers
Commentary by Steven Lofchie
FINRA suspended a broker for impersonating multiple customers in phone calls.
According to the AWC, the broker "impersonated 14 customers on 22" phone calls to his firm. FINRA said the broker impersonated customers "to facilitate the transfer of their accounts" or, in some cases, "to transfer funds to their bank accounts." FINRA highlighted that the customers had consented to the transfers, however none gave the broker permission to "impersonate them" on phone calls.
FINRA found that the representative's conduct violated FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").
The broker consented to (i) a 45-day suspension from associating with any FINRA member in all capacities and (ii) a $5,000 fine.
Commentary
Query: is a brief suspension and a small fine under these circumstances sufficient for what is effectively a fraud?
That said, the facts beg many questions, starting with, how good were these impersonations? Did the broker do both men and women? Did the broker do accents? (And, more broadly, are there still any great impressionists?)