The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) alleged that Kenneth Statly of Grand Ledge, Michigan fabricated insurance claims for two customers in violation of FINRA Rule 2010. Statly entered the securities industry in 1997 when you became associated with State Farm VP Management Corp. (SFVPMC). In 1998, Statly became registered as an Investment Company Products/Variable Contracts Representative and was employed by SFVPMC through February 2014.
Without admitting or denying the findings, and sole for the purpose of the proceeding, Statly agreed to the allegations that on three separate occasions in 2013, he fabricated or falsified insurance claims for the purpose of offsetting customers’ premium increases which he then settled and claimed. FINRA also alleged that on one occasion in 2013, Statly settled and paid an insurance claim that he knew to have been fraudulently inflated willfully violating FINRA Rule 2010. Continue reading →