Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
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.
February 2010
David Steven Forman
OS/2007007989901/February 2010
Forman participated in the sale of a $5 million life insurance policy to a trust and took control of the policy. Forman informed the trustee that the trust might obtain more money by selling the policy than by redeeming it for its cash value after notification was received that the policy would lapse for failure to pay premiums. Forman participated in sending premium payments to avoid a lapse in the policy without the trustee’s knowledge or consent, facilitated the sale of the policy with forged and falsified documents, and retained the entire amount of the sale proceeds, approximately $942,000, for himself and another individual. No portion of the sale proceeds was paid to the customers or the trust.
David Steven Forman: Barred
Tags:  Forgery    Policy Lapse     |    In: Cases of Note : FINRA
Bill Singer's Comment
How does no one seem to miss nearly a million dollars in insurance proceeds -- even in these days of billion dollar frauds?
Enforcement Actions