Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2009
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
Jill A. Kleinerman
AWC/2007008322701
In order to obtain authorization for withdrawals totaling $37,299.55 for a public customer directly from her IRA securities account, Kleinerman completed a distribution request form, dated the form in her own handwriting, affixed a photocopy of the customer’s signature onto the form and submitted it to her member firm. Kleinerman used a photocopy of the customer’s signature several times on distribution request forms with the customer’s full knowledge or consent. 
Jill A. Kleinerman: Fined $2,500 in light of her financial status; Suspended 30 days
Bill Singer's Comment
Sorry, just not sold on this case, although I understand and support the very important consumer-protection issue here of not countenancing forgery (which doesn't seem an issue here). If Kleinerman had signed for the client without the client's consent, then that's forgery.  However, if FINRA's statement of the case is taken at face value, Kleinerman used a photocopy facsimile AND did so with the customer's "full knowledge or consent." Hence, that's not a forgery. Nontheless (and give me a second here to finish my thought -- don't jump down my throat so quickly), there are valid reasons for not encouraging or permitting RRs to "affix" signatures that purport to have been signed by the customer and with the customer's consent. But here we're talking about a photocopy. I mean -- a photocopy! It's not as if Kleinerman were pretending that the signature she had affixed was authentic.  Moreover, the client apparently agreed to the use of the facsimile signature.

It's nice that FINRA "only" hit Kleinerman with a $2,500 fine. It's also incredibly charitable to "only" suspend her for 30 days. Me? I dunno.  Under the somewhat extenuating circumstances here, I'm not sure that a fine and suspension were both necessary, and I certainly don't see the need for the wallop of $2,500 (yeah, FINRA, in case you haven't figured it out, we're in a recession--that's a lot of money) and 30-days on the bench.

Still, there is an important issue here of protecting the public. I'm not downplaying that. I'm just suggesting that if you look at the facts in this case, I think another set of sanctions would have sufficed

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