According to FINRA, Brian Orlando Blanco was assessed a deferred fine of $5,000 and suspended for six months on January 24, 2022, for forging and falsifying signatures on insurance applications.
Blanco forged the signatures of insurance customers on life insurance applications without the customers' knowledge or permission and submitted the forged applications for processing. Additionally, Blanco falsified the signatures of other insurance customers who were family or close friends and had authorized him to sign their names. He also falsified dates on these applications. The insurance affiliate of Blanco's member firm identified his misconduct after one customer whose signature was forged complained.
While the applications were submitted to the insurance affiliate and none of the insurance customers held brokerage accounts at the firm, Blanco's conduct violated fundamental principles of honesty and integrity required in the securities industry. Furthermore, Blanco falsely stated on annual compliance questionnaires that he had not signed or directed someone else to sign applicants' names, compounding his misconduct with false attestations.
Forgery - signing someone else's name without authorization - is a serious violation that can constitute criminal conduct. Even when Blanco believed customers wanted the insurance, forging their signatures violated their rights and created documentation falsely indicating they had personally signed the applications.
The falsification of signatures for customers who had authorized Blanco to sign is also problematic. Even with authorization to complete applications, Blanco should not have falsified the customers' signatures. If customers authorize a representative to sign on their behalf, the proper procedure is for the representative to sign their own name and indicate they are signing as authorized representative, not to create false signatures appearing to be the customers'.
The false statements on compliance questionnaires demonstrate dishonesty beyond the underlying signature violations. When firms ask representatives to certify compliance with policies, truthful responses are essential to enable firms to identify and address misconduct.
For investors, this case illustrates the importance of carefully reviewing all documents before signing and verifying that signatures on documents are actually yours. Never authorize someone to sign your name on financial documents. If you need assistance, the proper approach is to provide power of attorney or similar authorization, not to allow forgery.
