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.

Douglas Richard Smith (Principal)
OS/2008012211601

Smith effected, without the customer’s knowledge, authorization and consent, the surrender and liquidation of a variable annuity in the customer’s account, and used the proceeds to purchase a variable annuity issued by another insurance company for the customer’s account. To effect the unauthorized transactions for the customer, Smith, without the customer’s knowledge, authorization and consent, affixed, or caused to be affixed, the customer’s signature and/or initials on five documents. Smith stamped a document with the firm’s medallion signature guarantee stamp and placed his signature on the stamp signature line, which had the effect of guaranteeing the customer’s signature as genuine.

Douglas Richard Smith (Principal): Fined $5,000; Suspended 18 months in all capacities

Tags: Variable Annuity