According to FINRA, Lee Ray Diedrich was assessed a deferred fine of $5,000 and suspended for three months in all capacities for forging customer signatures on account opening documents and variable annuity applications.

Diedrich electronically signed customer names on account opening documents and variable annuity applications without prior permission or authority from any of the customers. On some account opening documents, he listed his own email address as the customer email address. Diedrich caused his firm to maintain inaccurate books and records by submitting these documents to be processed.

Forging customer signatures is one of the most serious violations a registered person can commit. It completely undermines the integrity of account documentation and customer authorization. Customers have the right to review documents before signing them and to decide whether to authorize account opening or transactions. Forging signatures deprives customers of these fundamental rights.

When representatives forge signatures on account opening documents, it raises serious questions about whether customers actually wanted accounts opened, whether they understood account terms and risks, and whether subsequent activity in the accounts was truly authorized. Using the representative's own email address instead of the customer's email further suggests an attempt to prevent customers from receiving account-related communications.

Variable annuities are complex products with significant fees, surrender charges, and tax implications. Forging signatures on variable annuity applications is particularly concerning because customers may not have understood or agreed to these products.

The three-month suspension holds Diedrich accountable for forging customer signatures on multiple documents and causing the firm to maintain inaccurate records.