Allstate Financial Services, LLC and its representative, Justin Phillips, are currently under investigation by the national investment fraud law firm, Haselkorn & Thibaut. The firm is examining allegations of forgery against Phillips, who has been a registered broker with Allstate Financial Services, LLC since October 21, 2020.
According to the disclosure on Phillips‘ FINRA BrokerCheck report (CRD #6731481), customers allege that a signature was forged on a Request for Service form completed on August 23, 2022. The form was used to add a joint owner to several life insurance policies previously owned solely by one customer.
Allstate Insurance Company (“AIC”), the parent company of Allstate Financial Services, LLC, conducted an internal investigation into the forgery allegation. AIC concluded that the evidence suggests Phillips did not forge the customers’ signatures, citing Phillips‘ denial as credible and noting that the customer admitted during a recorded call that the signatures were not forged. AIC also stated that Phillips would not have received any personal benefit from the policy change.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable to financial exploitation.
Understanding Forgery and FINRA Rules
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Forgery is the act of creating, altering, or signing a document with the intent to deceive or defraud. In the financial industry, forgery can involve signing a client’s name on documents without their knowledge or consent. This practice is strictly prohibited by FINRA rules and can result in severe consequences for the offending broker or advisor.
FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Forgery directly violates this rule, as it is a dishonest and unethical practice that undermines the trust between brokers and their clients.
The Importance of Forgery Allegations for Investors
Forgery allegations are serious matters that can have significant implications for investors. If a broker or advisor has forged a client’s signature, it raises concerns about their integrity, trustworthiness, and commitment to acting in their clients’ best interests.
Investors who suspect that their signature has been forged on financial documents should immediately report the issue to their broker’s firm and consult with an experienced investment fraud attorney. Forgery can lead to unauthorized transactions, misappropriation of funds, and other forms of financial misconduct that can result in substantial losses for investors.
Recognizing Red Flags and Seeking Help
Investors should be vigilant in monitoring their accounts and reviewing all financial documents for accuracy. Some red flags that may indicate financial advisor malpractice or misconduct include:
- Unauthorized transactions or changes to account ownership
- Discrepancies between verbal agreements and written documents
- Pressure to sign blank or incomplete forms
- Inconsistencies in signature appearance on different documents
If you suspect that your financial advisor has engaged in forgery or other forms of misconduct, it is crucial to seek legal guidance from a qualified investment fraud attorney. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently offering free consultations to clients who may have been affected by forgery or other financial advisor misconduct.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a contingency basis, meaning clients pay no fees unless a recovery is secured. To discuss your case with a knowledgeable investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
