William James Hite, a former registered representative of NY Life Securities LLC, submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he forged an elderly customer’s signature on four documents.
According to FINRA, William Hite of Shelton Connecticut allegedly forged his elderly customer’s signature when he was not successful in reaching him to sign the document. Subsequently, Mr. Hite electronically forged the same customer’s signature on three more documents, including a fixed annuity application, client profile form, and replacement of life insurance or annuities form. What Mr. Hite was unaware of at the times of the forgeries, is that his elderly customer had passed away.
FINRA Rule 2010 requires that FINRA members and associated persons, in the conduct of their business, observe high standards of commercial honor and just and equitable principles of trade. Forging customer signatures is unethical conduct that violates FINRA Rule 2010. Due to his alleged violation of FINRA Rule 2010, FINRA assessed William Hite a deferred fine of $7,500 and suspended him for six months. The suspension is in effect from April 6, 2020 through October 5, 2020.
Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of fraudulent and unlawful behavior, such as forgery of documents and/or unauthorized transfers of funds, which violate industry rules and procedures. In order to protect investors from such misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement these protective measures, they may be liable to account holders for losses flowing from the misconduct. Therefore, investors who have suffered losses stemming from account document falsifications and/or forgery by their broker can bring forth claims to recover damages against broker-dealers, like NYLife Securities, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.
Have you suffered losses in your NYLife Securities account due to forged documents and/or unauthorized activity by your broker? Was William Hite 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 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.