James Michael Picha, of St. Louis, Missouri, a registered representative for MetLife Securities, Inc., has been fined and suspended for ten months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he modified a customer’s insurance policy without authorization. Letter of Acceptance, Waiver and Consent, No. 2016050601901 (Aug. 17, 2017).
According to the AWC, in December of 2012, a customer application for a variable universal life insurance application was submitted by Picha after he fabricated the coverage amount. Evidently, Picha input a coverage amount for the policy as $2,000,000.00 rather than $600,000.00 to accumulate commissions of $11,000.00 – nearly four times the commission that he was due to make by facilitating the sale of the $600,000.00 policy. The AWC stated that the customer’s policy lapsed after contributing an estimated $22,000.00 in insurance premiums.
Apparently, Picha was contacted by the customer after the customer complained about the policy’s coverage amount having been altered by Picha. Picha purportedly confessed to his wrongdoing upon confrontation, and attempted to settle the customer’s complaint away from the firm by returning the customer’s $22,000.00 in premiums. Yet, Picha failed to repay the customer as required; prompting the customer to notify Met Life in June of 2016 to obtain restitution. FINRA found that Picha’s alteration of the customer’s insurance policy coverage amount and attempt to settle the customer’s dispute away from the firm was conduct violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that Picha was fired by MetLife on June 30, 2016, based upon allegations of Picha’s wrongdoing subject of FINRA’s disciplinary action. Thereafter, on September 15, 2016, a customer initiated investment related written complaint involving Picha’s conduct was settled for $22,200.00 in damages, where the customer’s claim was supported by allegations that Picha made misrepresentations to the customer in connection with the customer’s purchase of a variable life insurance policy.
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