Former NYLife Securities Representative Barred from Associating with FINRA Member Firms to Resolve Allegations of Forging Customer Signatures to Execute Unauthorized Securities ActivitiesTuesday, November 5, 2019
Former NYLife Securities LLC registered representative, Cristina Sabengsy (a/k/a Cristina Colwell and Cristina Curtuneanu), recently submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) Department of Enforcement to resolve allegations of forging customer signatures in order to facilitate unauthorized insurance transactions.
According to her FINRA BrokerCheck report, Sabengsy was associated with NYLife Securities in Deerfield, Illinois from February 2016 to March 2018. She was permitted to resign after the firm reviewed her sales activities and identified possible forgery of customer signatures on forms related to the purchase of insurance policies. Shortly after leaving the firm, FINRA Department of Enforcement began investigating this allegation.
FINRA claims that from April 2016 through October 2017, Sabengsy forged signatures of three customers on fourteen insurance and variable annuity policy documents without their permission. Some of the forged signatures facilitated unauthorized insurance transactions, including opening a variable annuity policy for one customer and converting another customer’s term life insurance policy to a whole life insurance policy without either of the customers’ authorization and consent. As a result, Sabengsy violated FINRA Rule 2010 by failing to “observe high standards of commercial honor and just and equitable principles of trade.”
Sabengsy, without admitting or denying the allegations made against her, consented to a bar from associating with FINRA member firms in any capacity. One customer dispute, alleging the submittal of an unauthorized electronic application for a whole life conversion of a term life insurance policy, was settled in April 2018 for just over $2,000.
Oftentimes brokerage firms can be held liable for the brokers’ misconduct if they failed to supervise them while registered at the firm. If you lost money due to broker misconduct, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the experienced attorneys at ChapmanAlbin LLC have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.