Cristina Sabengsy, a former registered representative with NYLife Securities LLC, submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) and has been barred for allegedly forging signatures in order to facilitate unauthorized transactions, violating FINRA Rule 2010.
In February 2016, Cristina Sabengsy registered as an Investment Company and Variable Contracts Products Representative with NYLife Securities LLC. According to FINRA, from April 2016 through October 2017, Sabengsy forged the signatures of two of her insurance customers on fourteen insurance and variable annuity policy documents without permission. The findings stated that neither customers were made aware or consented to the transactions related to purchasing a variable annuity for one customer and converting the other customer’s term life insurance policy to a whole life insurance policy. The findings also stated that Sabengsy forged signatures on at least 10 other documents in order to receive commission. Although these were authorized transactions, the customers did not authorize the signing of their names. On March 7, 2018, the Firm filed a Uniform Termination Notice for Securities Industry Registration (“Form U5”) terminating Sabengsy.
FINRA Rule 2010 requires registered representatives to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
Without admitting or denying FINRA’s findings, Sabengsy consented to the sanctions and to the entry of findings and has been barred from association with any FINRA member in all capacities.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unauthorized transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like NYLife Securities, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your NYLife Securities account due to unauthorized transactions by your broker? Was Cristina Sabengsy your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against NYLife Securities stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.