← Broker database 2024-09-10
Justin Y. Gerow Suspended by FINRA for Forging Customer Signatures on Transfer Forms
According to FINRA, Justin Y. Gerow (CRD #4435995), a registered representative based in Punta Gorda, Florida, was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for three months. Without admitting or denying the findings, Gerow consented to the sanctions and to the entry of findings that he caused his member firm to maintain inaccurate books and records by manually signing customer names, without the customers' prior permission, on representative of record change request forms as part of transitioning the customers from his prior employer to his new firm. The findings stated that nearly all of the forms pertained to securities products, including a mutual fund and a variable annuity, and accordingly those communications were records of the firm required to be preserved. One customer complained and stated that she did not consent to changing the broker-dealer for her account to Gerow's new firm. The suspension was in effect from September 16, 2024, through December 15, 2024. This case highlights a particularly troubling practice: a broker signing customers' names without their permission to facilitate account transfers when moving to a new firm. Unlike cases where customers give verbal consent, Gerow signed customer names without prior permission. This means customers may not have been aware that their accounts were being transferred, and at least one customer explicitly stated she did not consent to the change. When a broker changes firms, they are often eager to bring their client book with them, as their compensation at the new firm may depend on the assets they bring over. However, the decision to move accounts must ultimately be the customer's choice. Representative of record change forms are formal documents that authorize important changes to a customer's account, and forging signatures on these forms deprives customers of their right to decide who manages their investments. The three-month suspension imposed on Gerow reflects the severity of signing without permission, as opposed to cases where customers had given at least verbal consent. For investors, this case is an important reminder that you should always be contacted directly and asked for your explicit consent before any changes are made to your account, especially when your broker moves to a new firm. If you discover that account changes were made without your knowledge, contact your firm's compliance department immediately and consider filing a complaint with FINRA.