Jesse Gil of Corpus Christi, Texas accepted an offer of settlement from the Financial Industry Regulatory Authority (FINRA) for his alleged misconduct while associated with Allstate Financial Services as a General Securities Representative (GSR). FINRA alleged that while Gil was associated with FINRA member Allstate Financial Services, he converted approximately $2,500 from a senior customer without their knowledge for his own personal gain. FINRA alleged that Jesse Gil used the converted funds on spa trips, sporting goods and even using it to pay his own credit cards. Additionally, FINRA’s investigators alleged Gil persuaded the customer to add him to their credit card as part of the bank’s policy and would even exchange financial advice for compensation. This was while Gil was associated with another firm and in direct violation of FINRA Conduct Rules. Furthermore, FINRA found that Jesse Gil gave false answers on compliance certifications in correlation with the investigation. Without admitting or denying the FINRA findings, Jesse Gil agreed to the sanctions and was barred from association with any FINRA member in any capacity. Continue Reading
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
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