The Financial Industry Regulatory Authority has barred Karen Paek, a former Pruco Securities broker, for creating and submitting multiple fictitious variable annuity applications to meet her minimum production requirements.
According to a FINRA letter of acceptance, waiver and consent, Paek spent nearly three years at Pruco Securities until March 2018 when she was terminated for submitting six fake annuity applications and customer financial statements with false information over the course of one year.
FINRA claims that she forged the electronic signatures on all of the applications, and none of the individuals were aware of or authorized the applications.
For five of the variable annuity applications, Paek created fictitious third-party brokerage statements, which she submitted to the firm to give the false impression the variable annuities would be funded from third-party accounts. Pruco discovered the forgeries during a review of unfunded variable annuity applications.
She received approximately $23,000 in advance commissions for the forged applications, all of which Pruco recovered.
Paek, who had no relevant disciplinary history, signed the AWC letter without admitting or denying the findings.