According to FINRA, Gloria R. Geslak was fined $5,000 and suspended from association with any FINRA member in all capacities for one month.
Geslak falsely certified to the State of New York that she had personally completed 15 hours of continuing education required to renew her state insurance license when, in fact, another person had completed that continuing education on her behalf. This conduct constitutes fraud because Geslak made a false certification to a state regulator in order to maintain a professional license.
Continuing education requirements exist to ensure that licensed professionals maintain current knowledge of laws, regulations, products, and industry practices. By having someone else complete the continuing education for her, Geslak deprived herself of the knowledge and training the continuing education was designed to provide. She also defrauded the State of New York by falsely certifying her compliance with licensing requirements.
This type of misconduct demonstrates dishonesty and a willingness to cut corners to avoid professional obligations. While this particular violation involved an insurance license rather than securities licenses, it reflects on Geslak's fitness to work in the securities industry because both industries require honesty and integrity. Someone who will lie to one regulator may be willing to lie to others.
Many registered representatives also hold state insurance licenses because they sell insurance products in addition to securities. The combination of securities and insurance licenses allows representatives to offer a broader range of financial products but also subjects them to multiple regulatory schemes. Representatives who hold both types of licenses must comply with the requirements of all applicable regulators.
The suspension serves as both punishment and deterrent. For one month, Geslak cannot work in the securities industry, resulting in lost income. The fine of $5,000 provides additional deterrence. The disciplinary action will remain on her BrokerCheck record, visible to investors, firms, and regulators.
Investors should verify that their broker maintains proper licenses and completes required continuing education. BrokerCheck shows a broker's current licenses and any disciplinary actions related to licensing violations. Continuing education helps ensure brokers stay current on regulations and products, ultimately protecting investors.
