According to FINRA, Beliveau Bays was named a respondent in a FINRA complaint alleging that he forged customers' electronic signatures on account applications and an account transfer form without the customers' knowledge or permission, and that he provided false, incomplete, and misleading responses to FINRA requests for information, documents, and testimony. FINRA opened an investigation into allegations in Bays' Form U5 and customer complaints.
The initial Form U5 stated that Bays' employment was terminated after he provided misrepresentations to his firm in response to inquiries surrounding his submission of key person life insurance applications for non-licensed assistants. Customer complaints in the amended Form U5 alleged that Bays forged customers' signatures on account applications. When FINRA asked in writing whether he was aware of life insurance policies being sold to two associated persons and whether he earned commissions, Bays responded that he was not aware of the policies or any commissions. This response was false and misleading because at the time of his response, Bays had earned over $720 in commissions from an active life insurance policy for one associated person and over $561 from an active policy for another.
The complaint also alleges that Bays gave false and misleading statements to insurance companies, FINRA, and his firm, including false information on insurance applications, in a Professional Profile form, in an email, and in responses to FINRA requests. Bays falsely stated that one associated person did not have accounts under his management at the firm. Additionally, the complaint alleges that Bays caused his firm to maintain inaccurate books and records by forging customer signatures and by overstating customers' annual income and net worth on new account applications.
The allegations against Bays, if proven, would represent a pattern of dishonesty including forgery, false statements, and falsification of records. Forging customer signatures is a serious violation that can facilitate unauthorized account openings, unauthorized transactions, or other misconduct. Overstating customers' income and net worth on account applications can make unsuitable investments appear suitable by creating false impressions of customers' financial capacity to bear risk. The alleged false statements to FINRA are particularly serious because they obstruct regulatory investigations.
For investors, this case highlights the importance of carefully reviewing all account documentation to ensure accuracy and to verify that signatures are authentic. Investors should never allow financial professionals to sign documents on their behalf, as this creates opportunities for abuse. The allegations about overstating income and net worth on account applications are concerning because this practice can be used to justify recommending investments that are actually unsuitable. Investors should ensure that account applications accurately reflect their financial situations and should question any discrepancies. While these are allegations that have not yet been proven, the nature of the charges suggests serious integrity concerns, and investors may wish to check BrokerCheck for updates on this case and to verify the status of any financial professionals with whom they work.
