The Monetary Trade Regulatory Authority has fined a former rep with New York Life $5,000 and suspended her for 16 months for paying life insurance coverage premiums for a number of purchasers utilizing her private checking account.
In keeping with FINRA’s order, between Jan. 1, 2022, and Dec. 2, 2022, whereas working each as an insurance coverage agent for New York Life Insurance coverage Co. and a registered rep for NYLife Securities, the corporate’s brokerage arm, Katelyn Rae Cordido Reese “falsified paperwork by inserting her private checking account data on life insurance coverage purposes for non-family-member clients.”
In 95 situations, the order states, Reese made premium funds for these clients utilizing funds from her private checking account, in violation of each NYLife and New York Life Insurance coverage insurance policies.
“In flip, these premium funds brought on New York Life Insurance coverage to pay Reese superior gross sales commissions, which exceeded the worth of the premium funds,” violating FINRA Rule 2010, the order states.
The order continues: “Reese submitted a number of life insurance coverage purposes that contained correct buyer data, besides that Reese enter her private checking account quantity moderately than the shopper’s account quantity on the digital funds switch type, creating the false look that Reese’s personal checking account quantity was the shopper’s checking account quantity.”
Because of this, within the 95 situations, Reese paid a complete of $30,367 in life insurance coverage premiums for non-family-member clients.