Dustin Kent Jefferies (CRD #4376154, Registered Principal, Columbus, Ohio)
submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000, barred from association with any FINRA member in any principal capacity, and suspended from association with any FINRA member in any capacity for one year. The fine must be paid either immediately upon Jefferies’ reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Jefferies consented to the described sanctions and to the entry of findings that he signed or traced customers’ signatures on applications to purchase life insurance or critical care insurance through an electronic application system available at his member firm, without the customers’ knowledge or consent and contrary to firm policy. The findings stated that Jefferies submitted life insurance applications for fictitious customers and, along with creating fictitious customer names and addresses, he created fictitious social security numbers, driver’s license numbers and other information about the purported customers.The findings also stated that Jefferies submitted these applications for fictitious customers in order to give the appearance that he was meeting his required production for insurance policies sold. The findings also included that when Jefferies submitted each of the fictitious applications, he listed fictitious credit card numbers made up of all zeros for the initial premium payment, knowing that the credit card would be rejected with no payment being collected or the customers billed, while at the same time, his firm would give him immediate credit for submitting a new insurance policy.
FINRA found that when questioned by his manager about the applications, Jefferies initially denied having any knowledge of the practice and when later pressured by his manager, he then offered that newer agents may have been engaged in the activity. FINRA also found that it was only after his manager noted that almost all of the applications with zeros for credit card numbers were submitted from his office that Jefferies admitted to his misconduct, stating he did so because the applications would be credited to his production numbers more promptly that month. In addition, FINRA determined that Jefferies also admitted that he had submitted applications using fictitious names and other information.
The suspension is in effect from February 7, 2011, through February 6, 2012.
(FINRA Case #2009018919701)
This information was obtained on FINRA’s Website.
If you feel you have been an alleged victim of Dustin Kent Jefferies please call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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