Christopher Barrett Reynolds, of Canonsburg, Pennsylvania, a stockbroker formerly registered with Pruco Securities LLC, has been permanently barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity because Reynolds forged customer signatures and made unsuitable investment recommendations. Letter of Acceptance, Waiver, and Consent No. 2022076491301 (August 16, 2024).
According to the AWC, between September 2021 and January 2023, Reynolds caused his employer to maintain inaccurate books and records by forging customer signatures. Without customer authorization, Reynolds electronically or manually signed customer names on 11 account documents, including transfer of assets forms and 1035 exchange forms. Additionally, for two customers, he signed their names on withdrawal forms without permission. By doing so, Reynolds violated FINRA Rule 2010 and Rule 4511, which mandates accurate books and records.
FINRA also found that Reynolds violated Rule 15/-1 of the Securities Exchange Act of 1934 (Regulation Best Interest) by recommending that customers make annuity withdrawals or surrenders and reinvest the proceeds in an index-linked annuity without a reasonable basis to believe those transactions were in their best interests. As a result of his recommendations, customers incurred over $32,000.00 in surrender fees and adverse tax consequences. Reynolds did not conduct a comparative analysis of the advantages and disadvantages of the existing annuities and the new annuities he recommended, nor did he consider whether the purchases were in the customers’ best interests.
Additionally, Reynolds caused Pruco Securities LLC to not retain business-related electronic communications. Between September 2021 and January 2023, he used his personal email account and text messages to communicate with customers about securities transactions, violating policies that required those communications to be conducted through firm-approved systems. Because he did not forward these communications for supervisory review or retention, he caused the securities broker dealer to violate record-keeping regulations under Section 17(a) of the Securities Exchange Act and FINRA Rules 4511 and 2010.
FINRA Public Disclosure shows that on June 25, 2024, a customer initiated investment related complaint involving Reynolds’ conduct was settled for $42,865.27 in damages based upon allegations that Reynolds made unsuitable recommendations and omissions of material fact regarding the replacement of a policy. The customer also alleged that a policy was surrendered instead of being exchanged under a 1035 exchange, causing unnecessary tax consequences during the time that Reynolds was associated with Pruco Securities LLC.
On January 24, 2023, Pruco Securities LLC filed a Uniform Termination Notice (Form U5), stating that Reynolds had been discharged for using his personal email address to send customer documents, failing to disclose annuity replacements, and submitting false customer signatures.
Reynolds was associated with Pruco Securities LLC in Canonsburg, Pennsylvania, from September 2, 2021, to January 24, 2023. He was associated with Wesbanco Securities Inc. in Ellwood City, Pennsylvania, from May 5, 2017, to March 5, 2021.
