NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Thomas Jones Charles Jr.
2008016036901

Charles sold variable universal life insurance products to his member firm’s customers and after leaving the firm, Charles remained the assigned representative on the accounts and received modest annual “trailing commissions.” Charles’ former firm asked him to pay a “single appointment” fee of $100 to the firm or submit customer-signed “Telephone or Electronic Transaction Authorization” forms for him to continue to service the customers’ accounts. Charles chose to do neither, but when he realized the deadline was approaching, he signed the customers’ names on the authorization forms without the customers’ permission and sent them to the firm via facsimile.

One of the customers complained that Charles had not being authorized to sign her name on the authorization form; therefore, Charles’ former firm notified Charles and his present firm of the customer’s allegation and asked Charles for a written explanation. During Charles’ present firm’s investigation into the complaint, he made misstatements, verbally and in writing, to the firm, denying forging the signatures and fabricating a story to prevent the firm from discovering his misconduct. Also, Charles subsequently admitted to the firm that his alibi was false and that he signed the customers’ names without authorization.

Thomas Jones Charles Jr. : Fined $35,000; Suspended 1 year

Tags: Variable Insurance  Forgery