The Financial Industry Regulatory Authority has fined Synovus Securities $315,000 for failing to detect that associated persons at one branch collectively forged or falsified more than 100 customers’ signatures on more than 150 documents, and that firm personnel forged or falsified registered reps’ signatures on more than 500 documents.
According to FINRA's order, from January 2022 to September 2025, Synovus failed to establish, maintain and enforce a reasonably designed supervisory system, including written supervisory procedures, concerning forgery and falsification of electronic signatures.
Synovus Securities, a brokerage and investment advisory firm based in Georgia, had about $7.1 billion in assets under management as of Jan. 1, according to a regulatory filing.
As FINRA explains, forgery occurs when one person signs another person’s name or initials on a document without the other person’s prior permission. Falsification occurs when a person creates a document or entry in a firm’s system that creates a false appearance by including altered or untrue information, such as signing another person’s name or initials on a document with the other person’s prior permission but without indicating that it is being done on someone else’s behalf.
Since January 2022, Synovus has permitted associated persons to electronically sign documents and to obtain electronic signatures from customers. Signers authenticate their identity by using their email address or by receiving an authentication code sent to their cell phone via text message, FINRA's order states. After the signer electronically signs a document, Synovus receives a certificate of completion that identifies, among other things, the cell phone number to which the authentication code was sent and the email addresses inputted for all signers.
During the time period, Synovus permitted personnel to electronically sign documents on behalf of registered reps in certain limited circumstances without requiring the signer to indicate that they signed on behalf of another, according to the order.
"Firm personnel signed another person’s signature on at least 500 documents in this manner," the order states. "This caused the firm to maintain inaccurate books and records in more than 300 instances, which included money movement requests and account maintenance forms."
In September 2025, the firm revised its WSPs to prohibit this conduct.
Further, from January 2022 through September 2023, the firm "had no system for review of certificates of completion for electronic signatures and had no other controls concerning non-genuine electronic signatures," according to the order.
Also, prior to April 2024, "the firm’s WSPs were silent regarding electronic signatures," the order states.
As a result, Synovus failed to detect red flags that four associated persons of one firm branch engaged in a pattern of forging and falsifying customer electronic signatures.
"Those associated persons provided their own cell phone numbers and email addresses in place of the customers’ and then electronically signed documents on the customers’ behalf," the order states.
Synovus "failed to detect that these associated persons’ cell phone numbers and email addresses repeatedly appeared on certificates of completion because the firm did not review them."
From March 2022 to September 2023, those associated persons electronically signed more than 150 documents on behalf of more than 100 firm customers, more than 30 of which were forgeries.
In September 2023, Synovus operations personnel discovered the misconduct while processing paperwork originating from the branch.
The firm then attempted to contact all affected customers; verified with each customer that was contacted that the underlying transactions were authorized; and, in many instances, obtained re-executed documents. No customers complained.
"In October 2023, the firm implemented a weekly review of certificates of completion for red flags of forgery or falsification, which the firm memorialized in its WSPs in April 2024," according to FINRA.
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