According to FINRA, Kimberly Elizabeth Nuessmann was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for 30 days for impersonating a customer who was her deceased relative.

Nuessmann submitted a distribution request to the firm to transfer the proceeds of her deceased relative's individual retirement account to an account controlled by two of her other relatives. The firm did not know the customer was deceased. Several days later, a firm employee called the customer to verify the distribution request. Nuessmann answered, impersonated the deceased customer, and verified the request. The employee discovered that the customer was reported deceased and called the registered representative for the customer's account for further verification. Nuessmann, who worked with the representative, spoke with the employee and indicated that the customer was not deceased. Ultimately, the firm determined that the customer was deceased and canceled the distribution.

The suspension was in effect from January 3, 2023, through February 1, 2023.

Impersonating a customer is an extraordinarily serious violation of securities regulations and fundamental ethical standards. In this case, the violation is compounded by the fact that Nuessmann impersonated a deceased relative to authorize a distribution from the relative's IRA account.

When a customer dies, their accounts become part of their estate and must be handled according to estate administration procedures, including following the instructions in the customer's will or trust, or if there is no will, according to state intestacy laws. The proper beneficiaries or estate representatives must be identified, appropriate documentation must be obtained, and distributions must be made in accordance with legal requirements.

By submitting a distribution request and then impersonating the deceased customer to verify it, Nuessmann attempted to circumvent these proper estate administration procedures. While the distribution would have gone to accounts controlled by other relatives (rather than to Nuessmann herself), this does not make the conduct acceptable. The distribution might not have been consistent with the deceased customer's estate plan, and even if the intended recipients were appropriate beneficiaries, the proper procedure requires documentation such as death certificates, letters testamentary, or beneficiary designation forms, not impersonation.

Nuessmann's conduct involved not just a single act of impersonation but multiple deceptive acts. First, she submitted the distribution request without informing the firm that the customer was deceased. Second, when the firm called to verify the distribution, she answered and impersonated the deceased customer. Third, when an employee followed up with additional questions, Nuessmann affirmatively stated that the customer was not deceased, which was a direct lie.

The firm's procedures worked as intended—the verification call and follow-up inquiry ultimately led to the discovery that the customer was deceased and prevented the improper distribution. However, Nuessmann's repeated attempts to deceive the firm demonstrate a concerning willingness to engage in fraudulent conduct.

The fact that Nuessmann was related to the deceased customer does not excuse or mitigate the conduct. Family relationships often give rise to opportunities for financial elder abuse and estate manipulation. The securities industry's rules and procedures for handling deceased customer accounts apply regardless of family relationships precisely because family members may have conflicts of interest regarding estate assets.

For investors, this case illustrates the importance of proper estate planning and the procedures that firms follow when customers die. Ensure that your beneficiary designations on retirement accounts and other investment accounts are current and reflect your wishes. These beneficiary designations generally control who receives the account proceeds upon your death, superseding instructions in a will.

For family members of deceased investors, understand that proper procedures must be followed, including notifying the firm of the death and providing appropriate documentation. Attempting to access a deceased person's accounts through impersonation or deception is not only a violation of securities regulations but may also be criminal fraud or identity theft.