← Broker database 2024-10-28
Kelln Beth Small Barred for Refusing to Testify About Alleged Forgery of Insurance Documents
According to FINRA, Kelln Beth Small was barred from association with any FINRA member in all capacities on October 28, 2024, after refusing to appear for on-the-record testimony requested by FINRA in connection with its investigation concerning her alleged forgery and falsification of certain customers' insurance documents.
Forgery and falsification of customer documents are serious forms of misconduct that demonstrate dishonesty and create significant risks for customers. When brokers forge customer signatures or falsify documents, they create records that falsely appear to reflect customer authorization or agreement. This can be used to cover up unauthorized transactions, misrepresent customer information, or create false documentation for transactions that customers never approved.
While the alleged forgery involved insurance documents rather than securities documents, it is still relevant to a broker's fitness to conduct securities business. A broker who is willing to forge insurance documents has demonstrated dishonesty that could readily extend to securities activities. FINRA evaluates whether individuals have the character and integrity to be trusted with customer assets and confidential information, and forgery is strong evidence of lack of integrity.
By refusing to appear for testimony, Small prevented FINRA from investigating the specific nature of the alleged forgery, which documents were involved, how many customers were affected, why she allegedly forged the documents, and whether any customers were harmed. On-the-record testimony would have allowed FINRA to question Small under oath about the allegations and obtain her explanation.
The refusal to testify is particularly damaging because it suggests Small had no innocent explanation for the alleged forgery and chose to accept a permanent bar rather than answer questions about her conduct under oath. If Small had legitimate explanations—such as that she had customer authorization to sign on their behalf or that the allegations were false—appearing for testimony would have been an opportunity to provide that information and potentially avoid discipline.
Investors should never allow their broker to sign documents on their behalf, even as a convenience. Every signature should be made by the account holder personally, or through properly executed power of attorney if the account holder is unable to sign personally. If a broker offers to "help" by signing documents for you or suggests that it's acceptable to have someone else complete your paperwork, that is a serious red flag.
Similarly, investors should carefully review all documents before signing to ensure they accurately reflect the account holder's information and intentions. Any discrepancies or false information should be questioned immediately.
Small's bar ensures she cannot continue in the securities industry and potentially engage in forgery or falsification with other customers. Investors can check broker disciplinary histories through FINRA's BrokerCheck system.