FINRA Fines, Suspends Ex-Securities America Rep Who Impersonated Dead Client
The ex-broker pretended to be her deceased relative, a firm client, in a phone call, FINRA says.
The Financial Industry Regulatory Authority suspended a former rep and broker for Securities America from associating with any FINRA member in all capacities for 30 days and fined her $5,000 for impersonating a deceased relative who was an ex-client of the Advisor Group firm on a phone call with the BD.
Without admitting or denying the regulator’s findings, Kimberly E. Nuessmann signed a letter of acceptance, waiver and consent on Dec. 14 in which she consented to the imposition of FINRA’s sanctions.
Kevin M. McGee, senior counsel for the FINRA Department of Enforcement, signed the letter on Dec. 21.
In 2011, Nuessmann became a registered representative and broker for Securities America, according to her report on FINRA’s BrokerCheck website.
On Jan. 3, 2022, Securities America filed a Form U5 Uniform Termination Notice stating that Nuessmann was terminated Dec. 17, 2021, for “[f]ailure to disclose accurate information regarding a relative who was a client during an operational inquiry from the home office.”
The incident happened earlier in December 2021 and represented a violation of FINRA Rule 2010 (governing standards of commercial honor and principles of trade), according to FINRA.
Advisor Group didn’t immediately respond to a request for comment on Friday.
In December 2021, Nuessmann submitted a distribution request to Securities America to transfer the proceeds of her dead relative’s IRA account to an account controlled by two of Nuessmann’s other relatives. The firm didn’t know the client was deceased, according to FINRA.
A few days later, a Securities America employee called the client to verify the distribution request, FINRA said. “Nuessmann answered, impersonated the deceased customer and verified the request,” according to the industry self-regulating group.
The employee, however, discovered the client was reported deceased and called the registered representative for the client’s account for further verification. Nuessmann, who FINRA said worked with that rep, spoke with the employee and claimed the client was not deceased.
Ultimately, however, “Securities America determined that the [client] was deceased and canceled the distribution,” according to FINRA.
Nuessmann is no longer a registered broker, according to her BrokerCheck report.
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