According to FINRA, Jordan Ross Helfgott was fined $5,000 and suspended for 45 days for forging seven signatures of a firm customer and his son on a variable life insurance application and related documents.
Helfgott forged signatures on four documents: three times on a variable universal life insurance application and four times on three documents evidencing receipt of the policy. He submitted all of the forged documents for processing. While the customer authorized Helfgott to purchase the variable universal life insurance policy on his behalf, neither the customer nor his son gave him permission to sign their names on any of the documents.
Document forgery is a serious form of fraud that violates customer rights and creates false records. Insurance applications and policy receipt documents require signatures for important legal and compliance purposes. The signature on an insurance application verifies that the applicant reviewed the information, understands the policy terms, and consents to the purchase. Receipt documents verify the customer received the policy and related disclosures.
When a representative forges these signatures, even with general authorization to purchase the policy, it creates several problems. First, it falsely represents that the customers personally reviewed and signed documents they never saw. Second, if questions later arise about whether the customers understood the policy terms or received proper disclosures, there will be no legitimate signed documents to refer to. Third, the insurance company relies on these signatures to verify proper procedures were followed.
The fact that Helfgott forged seven separate signatures across multiple documents indicates this was not a one-time shortcut but a pattern of falsifying documents. The customer's son, the proposed insured, apparently never authorized any aspect of Helfgott's actions yet had his signature forged multiple times.
While the customer wanted the policy and authorized Helfgott to purchase it, the forgery of signatures still violated securities laws and insurance regulations. The proper procedure would have been to have the customer and his son actually sign the documents or, if signing on their behalf was necessary, to use proper powers of attorney or indicate that Helfgott was signing as their authorized representative.
For investors, this case illustrates the importance of personally reviewing and signing all financial documents. Representatives should never sign customers' names to documents, even when customers have authorized the underlying transaction. Customers who discover forged signatures should immediately report them to the firm's compliance department and to regulators. The suspension is in effect from June 21, 2022, through August 4, 2022.
