Security protocols exist at financial institutions to protect client assets from unauthorized access, wire fraud, and identity theft. FINRA recently took strict disciplinary action against Omaha, Nebraska-based broker Curtis Wayne Smith after he allegedly bypassed these protocols by explicitly impersonating a client.

www.finra.org/rules-guidance/oversight-enforcement/disciplinary-actions

The Allegations According to a Letter of Acceptance, Waiver, and Consent (AWC), FINRA assessed a $10,000 fine and suspended Smith from associating with any FINRA member firm in all capacities for three months. Without admitting or denying the findings, Smith consented to the sanctions regarding allegations that he impersonated a customer on four separate occasions during telephone calls with an insurance company.

What This Means for Investors Even if a broker claims they are impersonating a client “for convenience” or “to help expedite a transaction,” it is an egregious violation of FINRA’s high standards of commercial honor. Impersonating a customer strips the investor of their agency, bypasses vital anti-fraud security measures, and opens the door to unauthorized trading or misappropriation of funds.

You should never have to surrender your identity to your financial advisor. If you discover that your broker has impersonated you to authorize trades, change account settings, or interface with third-party financial institutions, it is a severe breach of fiduciary duty. Investors subjected to unauthorized transactions via broker impersonation should seek immediate legal counsel to secure their accounts and pursue damages.