Christopher Steven Coffey, of Johnson City, Tennessee, a stockbroker registered with Allstate Financial Services LLC, has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Coffey forged customer signatures on two variable annuity withdrawal forms. Letter of Acceptance, Waiver, and Consent No. 2023080583901 (October 29, 2024).
According to the AWC, in September 2022, Coffey applied a customer’s signature on two variable annuity withdrawal forms without the customer’s prior authorization. Instead of obtaining the customer’s consent, Coffey attached a customer’s signature from a previous withdrawal form, redated it, and submitted the new withdrawal form as if it were genuine. Coffey never spoke with the customer before forging her signature and submitting the forms.
FINRA determined that these withdrawal forms qualified as customer account records. By submitting forged documents, Coffey caused the securities broker dealer to maintain inaccurate books and records. Consequently, FINRA found that Coffey violated FINRA Rule 2010 and Rule 4511, which requires securities broker dealers and stockbrokers to preserve accurate books and records.
FINRA Public Disclosure shows that Coffey was referenced in four customer initiated investment related disputes concerning Coffey’s conduct while associated with securities broker dealers. On June 7, 2022, a customer initiated investment related complaint involving Coffey’s conduct was settled for $23,347.34 in damages based upon allegations that Coffey made misrepresentations of material fact in connection with the sale of mutual funds when Coffey was associated with Allstate Financial Services LLC. Allegedly, Coffey said the recommended bond fund was similar to a CD and that the investment contained no risk. The alleged activity occurred between October 27, 2021, and April 14, 2022.
On October 26, 2023, another customer filed an investment related complaint involving Coffey’s conduct, in which the customer requested compensatory damages based upon allegations that Coffey made misrepresentations of material fact in connection with the sale of variable annuities when Coffey was associated with Allstate Financial Services LLC. The customer alleged misrepresentation of the lifetime income benefit rider associated with the variable annuity. The complaint was closed with no action as of January 16, 2024.
On January 16, 2024, a different customer initiated an investment related complaint involving Coffey’s conduct was settled for $8,043.55 in damages based upon allegations that Coffey committed forgery.
On May 3, 2024, a different complaint involving Coffey’s conduct was settled for $27,788.00 in damages based upon allegations that Coffey committed forgery and made misrepresentations of material fact. The customer alleged that she did not sign the account documents for her IRA variable annuity and that her signature was improperly used. Additionally, she alleged that Coffey provided false information regarding penalties she incurred during the time that liquidating a previous annuity.
Coffey was associated with Allstate Financial Services LLC in Johnson City, Tennessee, from November 25, 2019, to December 15, 2023.
