← Broker database 2023-04-13
Stephenie Collins Barred for Converting Customer Insurance Premiums
According to FINRA, Stephenie Ashley Collins was barred from association with any FINRA member in all capacities for converting customer premium payments exceeding $13,000 for her personal use and benefit.
Collins maintained a premium fund account as required by her member firm's insurance affiliate, a bank account in her name into which she was required to deposit insurance customers' premium payments. The insurance customers' premium payments deposited into this account became the property of the firm's insurance affiliate, and only customer premiums were permitted to be deposited. Collins had no right to use customer premium funds for any other purpose.
Collins converted the funds by improperly withholding funds tendered to her by customers that should have been deposited in the premium fund account, using them instead for her own personal and business purposes. In addition to the conversion, Collins created inaccurate deposit records for the premium fund account, which served to conceal her misconduct.
Conversion of customer funds is one of the most serious violations in the securities industry. It represents a fundamental breach of trust where a registered person takes customer money for their own benefit. This type of theft directly harms customers who have entrusted their funds to financial professionals. The creation of inaccurate records compounds the violation by showing deliberate efforts to conceal the wrongdoing. Investors should understand that their funds must be properly handled and safeguarded, and any misappropriation will result in permanent bars from the industry along with potential criminal prosecution.