According to FINRA, John Tayib Lund was fined $5,000 and suspended for four months for electronically signing customer names on various account forms without proper authorization.

Lund electronically signed a customer's name, without permission, on two account transfer forms, two forms providing Lund with discretionary authority over the accounts, and two new account applications. The account transfers were in connection with a bulk transfer of Lund's accounts from his former member firm to his new firm. The customer did not authorize Lund to electronically sign her name and complained once she learned of the transfers, which the firm reversed.

The signing of a customer's name without authorization is forgery, which is a serious violation involving dishonesty. In this case, it resulted in unauthorized account transfers and the unauthorized granting of discretionary authority. The customer's complaint led to reversal of the transfers, but the violation had already occurred.

In addition, Lund electronically signed, with prior permission, three account transfer forms and four new account applications for four other customers, one of whom was a senior. While these customers had given permission, obtaining customer permission to sign on their behalf is generally not appropriate and can create opportunities for abuse. The proper procedure is for customers to sign their own forms.

As a result of this conduct, Lund caused his firm to maintain inaccurate books and records. The forms appeared to bear customer signatures when they were actually signed by Lund, making it impossible to verify that customers had actually reviewed and approved the documents.

Investors should understand that they should personally sign all account documents, including account applications, transfer forms, and discretionary authority forms. Allowing a broker to sign on your behalf, even with permission, creates risks that documents may be completed incorrectly or that unauthorized changes may be made. Investors should never allow brokers to have electronic access to their signatures. The forging of customer signatures, even for supposedly legitimate purposes, demonstrates a lack of respect for proper procedures and creates serious risks of unauthorized activity.