An irreverent Wall Street Blog
by Bill Singer

Broker Fined And Suspended For Signing For Customer

August 23, 2013

Here we go again. Equity Indexed Annuities -- the old EIAs. And, on top of that, another round of a registered person signing a customer's name on a bunch of documents.  

For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Arthur J. Penna submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Arthur J. Penna, Respondent (AWC 2012033554901, August 20, 2013).

Penna has been in the securities industry since 1978 and was employed by several firms as a registered representative. The AWC asserts that Penna had no prior relevant disciplinary history with FINRA, the Securities Exchange Commission, any state securities regulator or any other self-regulatory organization.

EIAs

The AWC alleges that from 2009 through 2011, Penna affixed the signature of one of his customers to Equity Indexed Annuity applications and their attendant documentation.

Additionally, the AWC alleges that in April 2012, a second customer of Penna's sought an annuity from a company with which Penna was not registered. In order to process that request, Penna purportedly asked a business associate, who was registered with the annuity company, to effectuate the transaction as agent-of-record.  In furtherance of this arrangement, however, Penna is described as having "coordinated the execution of the annuity documents."  Moreover, upon realizing that this second customer had failed to sign a portion of the annuity application, Penna signed the customer's signature but failed to inform the agent-or-record of that act. 

FINRA deemed the above conduct to constitute violations of FINRA Rule 2010, and in accordance with the terms of the AWC, the self-regulatory organization imposed upon Penna a $5,000 fine and a 6-month suspension from associating with any FINRA member in any capacity.

Bill Singer's Comment

So, waddawe got here? We got a registered person signing one, and only one customer's signature to some EIA docs -- and then, for good measure, signing a second, but only a second customer's signature.  Does the fact that it's only one or two customers matter -- I mean, you know, is that some mitigation?  NO!  And as readers of BrokeAndBroker.com know, I have begged, pleaded, and cajoled industry folks to not engaged in any so-called "customer service" short-cuts such as filling in the blanks or signing a customer's signature without both the customer's and the firm's prior approval. Still, the practices continue. Oh well, at least it gives me something to write about.

As to the other aspect of this case, running the product through another agent-of-record when, to all contraindications, the transaction seems to be handled by you -- c'mon, most industry veterans and regulators will figure this one out. It's not that clever. It's not a brilliant, new idea.  Frankly, it's a tired bit of legerdemain that most of us recognize for a quick shuffle.

Also READ:

Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC Expungement BrokeAndBroker.com BrokerAndBroker Guest Blog Employment Guest Blogger Wells Fargo Street Sweeper Aegis Frumento Bill SInger Jobs OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley UBS CRD EFL Defamation BrokeAndBroker Wire Fraud InSecurities Elderly Statutory Disqualification OHO Whistleblower NAC Suitability PST FBI Forbes DOJ Citigroup Ponzi Rule 3270 Supervision ALJ BrokerCheck Borrowing Form U4 IRS SDNY Expenses Pro Se OIP Willful Supreme Court Outside Business Activity Rule 8210 Bank Securities Industry Commentator Felony Ameriprise Rule 2010 Dodd Frank WSP Rule 2080 Wrongful Termination Discretion Form U5 Discovery IRA Wachovia RIA Business Expenses JP Morgan Raymond James Punitive Damages Insider Trading Bar Mail Fraud Conversion Wife NASD Bankruptcy CCO Edward Jones TRO Husband Rule 1122 Stephen Kohn Forgery Margin Estate Checks Settlement arbitration Rule 3240 Willfulness Schwab Tax LPL 2Cir Commissions Trump Employment Tuesday NYSE Credit Card Outside Business Activities Wall Street Beneficiary Small Firm CFTC Promissory Notes Madoff Insurance Corrective Action Statement Frumento FAA Options Rule 3040 Injunction Private Securities Transaction Annuities Rule 3280 Facebook Bank of America Tax Liens Antitrust Impersonation Rule 12206 Real Estate Power of Attorney Due Diligence Customer Indictment Goldman Sachs Crypto Stay Remand Trust Tax Lien Exam TD Ameritrade OWB ETF Misdemeanor Retaliation ATM SRO Test Mortgage Street Legal Spouse Offer of Settlement Discrimination COVID Solicitation Complaint Eligibility Rule OTR Annuity Away Account Explained Decision Barclays Trustee Signature Securities Fraud Loan Sanctions email Case In Point Wire Rule 2510 ACQ Schapiro VA Jurisdiction POA NASDAQ Motion to Dismiss Initial Decision Lien Spouses Reg SP Appeal Blockchain Rule 4511 DCCir ARS Unauthorized Discretion Liens Burris Conspiracy 9Cir Rule 12200 Motion to Vacate Money Laundering T&P CRS Employee Forgivable Loan Mandatory Arbitration HFT Rule 4530 NSF Fidelity E*Trade Class Action JPMorgan Flash Crash Unsuitability Bonus Unfair Competition Retirement NASAA Cease And Desist PCAOB Deutsche Bank Compliance Failure to Supervise RBC Great Recession Signatures Personal Expenses AML Reimbursement FINRA Board Rule 3010 LOA Dissent Divorce Fiduciary Continuing Education Sexism Manifest Disregard REIT Willfully expungement Sexist Undisclosed Settlement Customer Complaint Huffington Post Disgorgement MSSB Vacatur 10Cir Scottrade Due Process Credit Cards Hacking Broker Protocol Severance Chase Lehman Brothers IAR Rule 3110 Identity Theft Rule 3050 Variable Annuity MC-400 Indemnification RRBDLAW.com Deceased Fees Registered Rep Magazine SDFL brokeandbroker Will Internet BD Hacker Bitcoin Board Bharara Disclosure Unauthorized Trading Social Media Cryptocurrency Gallagher Malware Spoofing Wedbush Annual Compliance Questionnaire LIBOR employment Apple Widow Stifel Zipper Wey 4Cir Examination Website Elder Abuse Audit Gensler Away Accounts Statute of Limitations Rule 9552 Lucia Trading Platform Rule 12904 Emails Kokesh Forex FINRA Arbitration Variable Annuities Loans Self Regulation Letter of Authorization Solicited Commission Coronavirus Stockbrokers Private Placement Crowdfunding Unsolicited RMBS Rule 12805 FINOP Arbitraiton PIABA Charles Schwab Public Interest Rule 2150 Second Circuit 2nd Circuit Net Capital Rule 2111 Prison Postponement BrokeAndBroker Bill Singer Registration BOP PNC Confidential Information Dakota Securities Exhaustion of Administrative Remedies Waiver OIG WSPs Private Securities Transactions Lehman Brummer jobs 3Cir Bonds Hedge Fund Credit Suisse Breach of Contract IPO Judgments BrokeandBroker Margin Call guest blog bill singer JPM Sanction Guidelines guest blogger Morgan Keegan Cheating Newman SunTrust Marijuana ADA Hilton Weiner Board of Governors Racism FOREX Unjust Enrichment NYAG insecurities 9/11 aegis frumento Imposter Rule 13200 Motion to Confirm RR Robinhood Diversity Bear Stearns CMA Plea CE Non-Solicitation Series 7 Bureau of Prisons RRBDlaw.com Time And Price Debit Card Whistleblowing Mother MetLife BrokeAndBroker.com Blog IC3 Telephone Unsuitable Suspension China TOD Botkin Puts Oppenheimer Concentration OSHA Obstruction of Justice Joshua Brown Small Firm Governor DOL Counterclaim Absolute Immunity EDNY Rakoff FNMA 1Cir JOBS Act 11Cir NDCA Rule 2210 Embezzlement Elder Fraud Finra Rule 4513 Puerto Rico Restitution TCR Statutory Disqualification Committee Knight Testimony Membership Continuance Tortious Interference Rule 2081 Mutual Funds Covid Rationale Sexual Harassment Private Placements Protocol Leggett Regulation SP NoCA Employment Agreement Compensation WB-APP Gold Broke And Broker Reg S-P Stifel Nicolaus Whistleblowers Restaurant Churning Check Kiting CPA Charge Non Solicitation Lawyer Confirm Auction Rate Securities CNBC Piwowar Raiding Enforcement Customer Information CEO money laundering Federal Reserve AAA Unregistered Service Hurry Wine Bandimere Confidential Taxes Michael King Associates EIA Michael King Biden Medicare Lawyers VIX Securities America Cannabis Dementia Preliminary Injunction SAC Rule 13805 Appointments Clause Funds Trade Secrets Saad securities industry commentator Banc of America Deferred Compensation USERRA Rule 12504 PN Stanford HSBC DNJ Information Passcode Ketchum TSSB Johnny Burris Termination Aleynikov TheBlot Sales Assistant Immunity Inability to Pay Written Supervisory Procedures Affinity Fraud Pennystocks Irreparable Harm Reg D Rosenthal Recruiting Khuzami MF Global Standing supervision Morgan Stanely Research Phishing Check Feigenbaum Test Center fraud Executor Testing Sarbanes Oxley Wire Transfer Charity Leveraged ETF Excessive Trading Customers ING Affiliate Bloomberg 10b-5 Corruption Shah Gilani Confidentiality Article V Form ADV Day Trading High Frequency Trading Bank Fraud Pennystock Robert Cook Woody Allen Conflict Circuit Court Rule 12212 Beneficiaries Hester Peirce Constitution OCIE Conflict of Interest 10b-10 Moon Stipulated Award CGMI BrokeAndBroke Kon 6Cir Self Regulatory Organization Pruco Layering Superior Court signature FMLA CDO DMD Statement of Corrective Action IM Probate Motion to Compel Bid Rigging Outside Account AXA ICO Negligence Rule 9554 Vault Corzine Rule 21F Administrative Remedies Ethereum Casino Trader Wanger Extraordinary Circumstances RICO Eligibility Joint Account Aguilar White NRF Talman Harris Whitman Consent Order Medical Condition Subpoena Finder\'s Fee Rule 3310 Marketplace Sexual Discrimination 5Cir Star Wars Argentina Disability Failure To Supervise State Actor PAQ 6th Circuit Online Spoliation Self Directed Honorarium Government Accountability Project David Sobel Morgan Stanley Smith Barney Default Privilege JPMS FINRA AWC Parking 401k NPR Guitron Relevant Disciplinary History Obstruction Over Concentration Side Bar Mutual Fund Congress Hugh Hewitt Yesenia Guitron Teleconference Chase Investment Services Sharemaster Third Party Vendor Vietnam Commodities Fraud FINRA Small Firm Laptop Chief Compliance Officer Rule 3030 Attorneys Fees Accounting Marine Corps Rule 2430 ACH Penson Ride the Thunder Poteroba Death McDuff Lincoln Financial Hearing Marines Nietzsche Google Amazon Cantor Fitzgerald Smith Barney Unauthorized Practice of Law Chevron Blank Forms Guest Bloggers First Amendment Libel SIFMA Annual Audit Red Flags Password Stop Loss Do Not Call Gamification Son BrokeAndbroker Escrow Judgment S&P Gross Revocation Hotel WaMu TIC Johnson Fowler Regulation 40 Act Conflicts FAP Wires Reverse Life Insurance Settling Away Risk Dell Mistake Non Solicit 401(k) Resignation Control Person Chase Bank Scholander RRBDlaw Daughter Cold Spring Advisory Group BATS Christian Stanley LLC Tesla ESOP Blackbook Jennifer Tarr Taft Correctional Institution Commissioner Stein Transamerica Res Judicata Offset Copyright Financial Professionals Coalition Investor Alert NY Life Permanent Bar For Cause Kiting Client Information Fine Outside Accounts Title VII Withdrawals Money Market Arrest Newport Coast Securities Crime GameStop FCPA Commodities Turnover Hospital Rule 13504 Reuters Scottsdale Slander Prudential Ethics Motion DCO VXX SD Extortion Confirmation Data Fee Meals Harassment Liquidation Attorneys\' Fees 17a-5 elderly Acosta David Lerner Rule 9216 EEOC Expert Witness OWWP Inmate Equity Indexed Annuities Tax Fraud Respondeat Superior Department of Justice Subject Matter Jurisdiction Peirce Timban mail fraud securities fraud Puerto Rico Bonds Self Reporting wire fraud Counterfeit Regulation S-P Oral Discretion Civil Rights Electronic Communications Life Insurance BrokerAndBroker.com Verbal Discretion Capital Gains NYG Capital Interactive Brokers Elles Inside Information Series 79 Florida Fifth Amendment Rory Flynn Backstage Wall Street CD Extraordinary Cooperation Texting Reform Falsification Outside Counsel Relevant FCI Beaumont Book of Business Fines Female Pension UIT Disciplinary History WhatsApp Selling Away Schneiderman FCI Racial Discrimination wrongful termination Thain Elder Law Arbitration Stockbroker Obama Chiasson Moore Netschi Zoom Microcap YouTube 11th Circuit Rule 1031 WBAPP Fiduciary Duty FOCUS Trading Rule 2370 Penalty SP Investment Adviser EDPA Public Arbitrator Checking Romer Jon Corzine Hostile Workplace Mattera NFT College Fourth Amendment Harris Allstate Trainee Fee Laser Witness Tampering BIll Singer Rule 420 Principal Cryptocurrencies Exotic ETF Berthel Fisher Flash Drive Motion to Postpone SDCA JPMorgan Chase Father Expense Dinner TradeStation Municipal Bonds ETFs Compliance Officer Merger Mary Jo White Private Actor Powell Wells Fargo Advisors SIE Exemption State Farm Motion to Compel Arbitration No Show Bill Singer BrokeAndBroker Capitalism Martoma Janney Montgomery Scott Silver Solomon iPhone Guardian Punitive Sterne Agee NML Diamonds Short Sale Bezos Compromise Non Compete Swaps Wire Transfers ESG FDA Dostoevsky DWI Motion To Dismiss Compliance Questionnaire Fiero Income Gnomes Quasi Governmental Evidence Dylan SEC Rules of Practice South Park Fraudulent Inducement Kennedy Altered Communications Cybersecurity false statements Books and Records Frivolous bank Training BitTorrent Kovack Securities Sharing Agreement whistleblower Bequest Executrix Burden of Proof Coin Howey Summary Judgment Purshe Kaplan Vungarala Rule 13201 Turbeville Customer Files Section 206 MBS Section 1332 Schottenstein Notice finra Nasdaq Pershing Impersonator Lewis Carroll Game of Thrones Stock Promotion Constructive Discharge Women EB-5 Production Merill Lynch Disparate Treatment Tippee Rule 12511 FINRA Eligibility Rule Pacifico Non-Prosecution Agreement Vacate Non-Solicit Currency Led Zeppelin Motiion to Acquit Alcoholism Vaccarelli Covid-19 Tipper annuities Exhaustion Doctrine Molchatsky Initials Oilpro Kent SDOH Hayden Motion to Exclude Discharge Altered Records Corporate Credit Card BBVA Daspin Orders JAMS Allocation Cherry Picking Rule 13212 AI Goble NPI Subway Hackers Wages Clearing Firm Prime Bank Expert Fidelity Brokerage Services Practice Sale Overtime Ecuador CAT Jay Clayton Elon Musk Springsteen Rule 3210 ALJ Foelak McCartney Series 66 Success Fee Texas State Securities Board Rule 13904 Third Party Beneficiary Examinations Bob Dylan Retired Woman With Cane Tennis Court At Will Gabelli Traders Proctor NYLIFE Binary Options Rule 2330 Undercover Cybercrime EDVA Voya Back Dated Sears Liu Branch Manager Exception Report Khan Rule 1210 Shotgun Pleading Ronald Filler Eric Stein Rule 21F-17 Exception Reports Twitter Lek Production Bonus Transitional Bonus Lexicon Undertaking Reasonable God Promoter National Securities Beatles ACT! Tysk Jury Instructions MDLA Reg SHO Life Settlement NMS Clayton DDC Forfeiture GME Obamacare Well Managed Portfolio Preet Bharara Supervisor Confidential Customer Information QuadrigaCX defamation Walter Schumer Dow Salman Espionage Mail Grievance Ruder Task Force Joint Production Costa Rica FTC Justice HBO Boyland Diabetes Form TCR AIG Hertz Books And Records Bartko NRSRO Collateral Bar Municipal Advisor JP Morgan Securities AMC Court of Appeal Preliminary Determination Spam MAP Willfull Bribe William Faulkner Audit Committee DMCA Citibank FINRA Foundation Reverse Merger US Airways Cellphone Hurtado Investment Advisers Act Scam Rule 13104 MSPB Fernandez Gifts Rules of Practice Hearsay Rule 12104 Address Panama Fundacion Nicor Rule 13206 CMO Varney expenses Travel Personal Information reimbursement Payroll Stipulation Bill singer 8210 Nicolas Corcione Office of Special Counsel Guardianship Unauthorized Trades sexism Retroactive SIPC ALJ Grimes Legend Banks Malice BrokeandBroker.com Criminal Mary Schapiro Calls Galleon DPA Statute of Limitation Ineligibility Financial Disclosure 9th Circuit Sex Arbitrability Disney IBM Broy House Financial Services Tax Advice AWC. FINRA Rule 144 Lorenzo PHC Ten Commandments RRBDLAW PSRO DAO Stephen A. Kohn Particularity Brokeandbroker.com Apartment NFA Deferred Prosecution Agreement Excel Mantar Baby Boomers FinCEN Last Known Address Tran ADR Countrywide Bank Secrecy Act In Connection With DRS FNI Media Investacorp 1099 Wang SLUSA Patriot Act Law School GAP Work Product Dissident Leveraged ETFs Securities and Exchange Commission Margin Calls Press Release 529 Plan Deceased Customer Murray Naskovets In House Counsel Koval Skimming Arbitrator Kenneth Starr Collateral Kierkegaard Retroactive Bar Credit Repair Lee Age Discrimination Merrill Anderson Theft Transfer Nationwide Reason for Termination Advisor Placement Group Martin ADEA Newbridge Bank Guarantee