FINRA Bars Former Broker for Forging Client Signatures on Annuity Paperwork

FINRA has barred former Pruco Securities broker Avinesh Shankar for using electronic signature software to forge client signatures on annuity paperwork, resulting in over $500,000 in unauthorized advanced commissions. This disciplinary action was resolved through FINRA’s expedited settlement process, with Shankar agreeing to sanctions without admitting or denying the allegations, as stated in the order released on March 20.

Shankar began his tenure with FINRA in 2013 with BBVA Securities and joined Pruco in October 2019 as a general securities and investment company representative. Pruco terminated Shankar's registration on March 13, 2024, through a Form U5. The termination cited his submission of inaccurate annuity applications containing forged client signatures for more than 30 customers, which led to unwarranted commissions. These commissions were later recouped multiple times by the company.

Between 2022 and 2024, Shankar submitted 115 annuity applications, forging 64 customer signatures without their consent. Although none of the annuities were funded, Pruco paid advanced commissions on 114 applications, totaling $511,609.74. FINRA classified these payments as converted funds due to fraudulent submissions. Shankar provided false explanations for funding delays to annuity distributors, prompting the commission process to dispatch funds before finalizing annuities.

When the annuities remained unfunded for over 90 days, Pruco deducted the funds from Shankar’s subsequent paychecks and rolled any outstanding amounts into future earnings. By the time of his termination, Shankar owed Pruco $163,910.71 in unearned commissions linked to these applications.

The order highlighted several customer-level cases of Shankar's infractions. One customer’s name was used fraudulently on six applications, yielding $29,714.20 in commissions, while another customer's name appeared on five applications, resulting in $20,613.30 in commissions. Additionally, 62 more customers were linked to 104 applications, generating $461,282.24 in advanced commissions.

The investigation concluded in January 2024, when Shankar admitted to forging customer signatures to earn commissions during a confrontation with the firm. Subsequently, his employment was terminated on February 20, 2024. FINRA established that Shankar violated Rule 2010 regarding conversion and forgery, resulting in a lifetime bar from associating with any FINRA member.

This case mirrors previous incidents at Prudential over the past decade. In 2019, broker Karen Paek was barred from the industry for submitting fictitious variable annuity applications with forged electronic signatures. Similarly, in 2016, Wade Wilson Turner was barred for inappropriate variable annuity recommendations while at Prudential Financial and MetLife.