Articles Tagged with Allstate Financial Services

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William Kerschbaumer, a broker formerly employed by the Carrollton, Ohio branch of Allstate Financial Services, LLC, submitted a letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he forged two customers’ signatures without the customers’ knowledge or consent.

William Fredrick Kerschbaumer Jr., of New Philadelphia, Ohio, was found by FINRA to have forged the signatures of two customers on four documents which were related to their annuity investments.  FINRA’s findings state that Mr. Kerschbaumer forged a customer’s signature on two variable annuity distribution forms and, approximately three months later, again forged the same customer’s signature on a letter requesting restoration of a rider to an annuity investment without the customer’s knowledge or consent.  Further, FINRA found that Mr. Kerschbaumer forged the signature of a second customer on a letter to the firm requesting a distribution from the IRA account of the customer’s ex-husband, once again without the customer’s knowledge or consent. Continue reading →

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A complaint filed by the Financial Industry Regulatory Agency (FINRA) against Philip Leonard Grasso Jr. alleges that he, a representative of Allstate Financial Services, LLC (Allstate Financial) “inserted himself into the lives of two elderly customers in order to defraud them of their funds.” FINRA alleged that while Mr. Grasso was on a medical leave of absence from Allstate Financial, he inserted himself into the lives of two elderly customers (ages 89 and 91) in order to defraud them financially.

Between December 2013 and January 2014, Mr. Grasso allegedly convinced the two elderly clients to liquidate their various life insurance policies and annuities (approximately $227,150) and open a brokerage account. Mr. Grasso allegedly then took all the funds from the brokerage account and put them in his own bank account. Mr. Grasso used these client funds for personal expenses like his mortgage and stock investments. In an attempt to hide the misconduct, Mr. Grasso allegedly created false documents for his clients and misrepresented their investment. Mr. Grasso was terminated by Allstate Financial due to allegations that he “commingled the customers’ funds” in May 2014. As it’s a current investigation, FINRA has requested sanctions and restitution to be imposed upon Mr. Grasso. Continue reading →