In a recent development, Bankers Life Securities, Inc. (BLS) and its affiliated insurance company, Bankers Life and Casualty Company (BLC), have been accused of unauthorized life insurance policy issuance by a client. The complaint, received on February 9, 2024, alleges that the client’s initials on the policy application were forged and resemble the penmanship of the registered representative, Royah Sultan.
The client has requested a full refund of the policy, claiming that they did not authorize the life insurance policy. In response, BLC denied the client’s allegations, stating that the client had signed multiple documents via wet signature, including a confirmation to submit the life insurance application electronically. As an accommodation, BLC refunded the client’s premium, but the allegation of forgery against the registered representative was not substantiated.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Royah Sultan and Bankers Life Securities, Inc. regarding this matter. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut offers free consultations to clients and operates on a “No Recovery, No Fee” policy. Investors can contact them toll-free at 1-888-994-8066.
Understanding the Allegations and FINRA Rules
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The complaint against Royah Sultan and Bankers Life Securities, Inc. revolves around the alleged forgery of a client’s initials on a life insurance policy application. While the product sold to the client was not a security and was issued by BLC, the firm is reporting this complaint because an allegation of forgery was made against a registered representative of the firm.
FINRA, the Financial Industry Regulatory Authority, maintains strict rules and guidelines to protect investors from fraudulent activities. According to FINRA BrokerCheck, Royah Sultan (CRD #7207741) has been registered with Bankers Life Securities, Inc. (CRD #173962) as a broker and investment advisor since December 14, 2019.
FINRA Rule 2010 states that brokers must observe high standards of commercial honor and just and equitable principles of trade. Forgery of client documents is a clear violation of this rule and can result in disciplinary action against the broker and their firm.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) charged five individuals in a global trading scheme that netted $100 million in illicit profits, highlighting the prevalence of investment fraud in the financial industry.
The Importance for Investors
This case highlights the importance of investor vigilance and the need for transparency in financial transactions. Investors should always review their account statements and policy documents carefully to ensure that all transactions and agreements align with their intentions and instructions.
Unauthorized transactions or forged documents can lead to significant financial losses for investors. It is crucial for investors to work with trusted financial professionals who adhere to high ethical standards and regulatory guidelines.
If an investor suspects that their financial advisor has engaged in fraudulent activities or unauthorized transactions, they should immediately contact their firm’s compliance department and consult with an experienced investment fraud attorney to explore their legal options.
Red Flags and Recovering Losses
Investors should be aware of several red flags that may indicate financial advisor malpractice, such as:
- Unauthorized transactions or trades
- Forged or altered documents
- Inconsistencies between verbal agreements and written confirmations
- Excessive or unexplained fees
- Lack of transparency or evasive behavior from the advisor
If an investor has suffered losses due to the misconduct of their financial advisor or brokerage firm, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for their losses without the need for a lengthy and expensive court trial.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration cases and has successfully recovered millions of dollars for their clients. Their team of skilled attorneys can help investors navigate the complex legal process and fight for their rights.
Investors who believe they have been victims of financial advisor misconduct or unauthorized transactions should not hesitate to seek legal guidance. By contacting Haselkorn & Thibaut for a free consultation, investors can take the first step toward protecting their financial future and recovering any losses they may have suffered.
