← Broker database 2023-11-15
John Ginsburg Suspended for Adding Information to Signed Customer Forms
According to FINRA, John Ginsburg was fined $5,000 and suspended for one month for adding information for customers to firm documents after obtaining the customers' signatures on blank or incomplete forms, causing the firm to maintain inaccurate books and records.
Ginsburg submitted the forms to his member firm for processing after adding information following customer signatures. The missing information added by Ginsburg included material information regarding proposed investments and the costs and fees associated with those investments. This practice of having customers sign blank or incomplete forms and then filling in details afterward is prohibited because it creates risks of errors, misunderstandings, and potential abuse.
When customers sign blank forms, they don't know exactly what they're agreeing to, and there's no guarantee that the information filled in later accurately reflects what was discussed or agreed upon. Even if Ginsburg had good intentions and accurately reflected the customers' wishes, the practice undermines the purpose of customer signatures, which is to document that customers reviewed and agreed to specific information.
The fact that the missing information included material details about proposed investments and associated costs and fees makes this violation particularly concerning. Customers should have an opportunity to review and understand investment details and fees before signing forms, not trust that their broker will fill them in correctly after the fact.
By causing his firm to maintain inaccurate books and records - documents showing customer signatures on forms that were incomplete when signed - Ginsburg violated recordkeeping requirements designed to ensure the integrity of customer documentation.
Investors should never sign blank or incomplete forms, even if their broker assures them the missing information will be filled in correctly. Always insist on reviewing complete documents before signing, and retain copies of everything you sign. If a broker pressures you to sign incomplete forms, it's a serious red flag that should be reported to the firm and to FINRA.