FINRA Suspends Administrative Assistant for Forging Customer Signatures
Commentary by Steven Lofchie
FINRA suspended an administrative assistant for forging customer electronic signatures on firm records.
According to the AWC, the administrative assistant electronically signed 22 documents on behalf of nine customers without authorization and 118 documents on behalf of 97 customers with authorization. FINRA found that the documents were required firm records related to authorized transactions. FINRA also noted that no customers complained, and that the administrative assistant mistakenly believed signing customer names was permissible.
FINRA determined that the administrative assistant violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade") and 4511 ("General Requirements").
The administrative assistant consented to (i) a six-month suspension from associating with any FINRA member in all capacities and (ii) a $5,000 deferred fine.
Commentary
Once again, this case illustrates that there is no consistent rationale to the FINRA penalties imposed on individuals. For example, in a recent excessive trading enforcement action, a broker that caused $100,000 in losses and costs to a retiree was not hit with any money penalty and got a three-month suspension. But in this case, an administrative assistant, who may not have realized that she was doing something improper, and did not cause any customer injury, was subject to a $5,000 fine and a six-month suspension. These are not isolated examples. (See, e.g., this former matter - with comment).