According to FINRA, Thomas Patrick Barton III was barred from association with any FINRA member in all capacities for electronically signing the names of individuals on five fictitious insurance policy applications without their prior permission and submitting the forged applications to an insurance company.

Barton was found in violation of ethical standards prohibiting forgery and fraud. On each fictitious application, Barton designated his own bank account for the automatic premium payments. None of the individuals whose names he forged had authorized Barton to sign their names on the applications, and none of them had discussed purchasing insurance through him. The scheme came to light when one of the individuals contacted the insurance company and inquired about why she and her spouse had been issued policies they never requested.

When confronted, Barton claimed the policies had been issued by mistake, but he did not disclose that he had created a third unauthorized application. Several weeks later, demonstrating a pattern of continued misconduct, Barton created two additional fictitious policy applications. This conduct represents a serious breach of trust and demonstrates intent to defraud, as Barton stood to benefit from the premium payments being drawn from his own account, suggesting a scheme to generate commissions while controlling the payment mechanism.

Forgery and the creation of fictitious applications are among the most serious violations in the securities and insurance industries because they involve intentional dishonesty and breach of fiduciary duty. Such conduct directly harms consumers and undermines the integrity of financial markets. The bar in this case is appropriate given the intentional and repeated nature of Barton's misconduct. Investors should be vigilant about unauthorized accounts or insurance policies opened in their names. Regularly reviewing credit reports and monitoring for unexpected insurance policies or account statements can help detect identity theft or forgery. This case serves as a warning that individuals who engage in forgery and fraud face permanent removal from the industry. Investors should verify that any insurance policies or investment accounts were properly authorized before making premium payments or deposits.