Ex-LPL Rep Forged Client Signatures: FINRA
The broker falsely attested that he had not signed another person’s signature on a document, FINRA says.
The Financial Industry Regulatory Authority has fined a former LPL rep $5,000 and suspended him for two months for falsifying the electronic signatures of 13 customers on a total of 29 account documents.
The incidents violated FINRA Rules 2010 and 4511.
From December 2017 to June 2021, Spencer Huggett electronically signed, with prior permission, the signatures, FINRA’s order states. Two of the customers were seniors.
“The documents signed by Huggett, which included new account applications and move money forms, were required books and records. None of the customers complained and the transactions were authorized,” FINRA said.
However, in June 2020 and November 2021, “Huggett falsely attested to LPL in compliance questionnaires that he had not signed or affixed another person’s signature on a document,” FINRA states.
Huggett first registered with FINRA in 2002.
In November 2017, Huggett became registered as a general securities representative, among other registrations, through an association with LPL Financial LLC.
LPL terminated Huggett’s registration by Form U5 dated June 10, 2022, disclosing that Huggett was terminated after he “[e]lectronically signed account documents on behalf of customers, in violation of [the] Firm[’s] Document Signature Policy. No customer complaint submitted.”
Huggett is now registered with Cetera, according to BrokerCheck.
By falsifying customer signatures, Huggett violated FINRA Rule 2010, FINRA said. In addition, by causing LPL to maintain inaccurate books and records, Huggett violated FINRA Rules 4511 and 2010.