Pruco Securities Representative Barred from FINRA Member Firms to Resolve Allegations of Falsifying Customer Securities DocumentsMonday, August 26, 2019
Karen Paek, a former registered representative, most recently associated with Pruco Securities, consented to a bar from association with any member firm of the Financial Industry Regulatory Authority (FINRA) after allegedly violating securities industry rules regarding fictitious variable annuity applications.
According to her FINRA BrokerCheck report, Paek was associated with Pruco Securities, LLC in El Segundo, California from June 2015 to March 2018. She was discharged for allegedly creating variable annuity applications and customer financial statements with fictitious customer information. She then allegedly signed clients’ names and submitted these non-genuine annuity applications to Pruco.
Shortly after she was discharged from her position, Pruco submitted a Form U5 alerting FINRA of her departure and reason for termination. After investigating the allegations, FINRA Department of Enforcement asserts that between November 2017 and December 2017, Paek created, signed, and submitted six fictitious variable annuity applications and supporting documents to meet her minimum production requirements at Pruco. For five of the six false applications, Paek allegedly created fictitious third-party brokerage statements to give the impression that they would be funded from third-party accounts. Paek received approximately $23,000 in advance commissions for the fictitious VA applications.
Based on the foregoing, Paek violated FINRA Rules 4511 for causing Pruco to maintain inaccurate books and records and 2010 for failing to “observe high standards of commercial honor and just and equitable principles of trade.” Paek, without admitting or denying the allegations, consents to a bar from associating with FINRA member firms in any capacity.
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 your broker’s misconduct, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the 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.