John Ginsburg of Houston, Texas, a stockbroker registered with Principal Securities Inc., has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Ginsburg falsified customer documents when he was associated with Principal Securities Inc. Letter of Acceptance, Waiver, and Consent No. 2020068747501 (November 15, 2023).
John Ginsburg’s regulatory issues came to light following a November 30, 2020, amendment to Form U5 filed by Principal Securities Inc. This amendment revealed that Ginsburg had resigned voluntarily after the securities broker dealer received a customer complaint and began an internal review related to customers signing blank forms.
The investigation by FINRA uncovered that from January of 2019 to October of 2020, Ginsburg had falsified 19 documents for 18 customers. He obtained signatures from these customers on blank or incomplete forms and then filled in the missing information without their knowledge or reapproval. The forms, which included mutual fund switch forms, transfer of assets forms, and account rollover analysis forms, were submitted to Principal for processing and held in the firm’s files. The added information included details about proposed investments, along with costs and fees. Ginsburg violated FINRA Rule 2010.
Additionally, by causing Principal Securities to maintain inaccurate books and records, Ginsburg violated FINRA Rules 4511 and 2010.
Ginsburg has been associated with Lincoln Financial Securities Corporation in Houston, Texas as a stockbroker and investment advisor representative since December 21, 2020. He was associated with Principal Securities Inc. in Houston, Texas as an investment adviser and a stockbroker broker from November 18, 2014, to November 24, 2020.
