FINRA Charges Ex-Pruco Broker With Signature Fraud
FINRA has accused a former Pruco Securities broker of forging customers’ signatures on fabricated annuity applications to rake in commissions.
According to a recently filed complaint by FINRA Enforcement, Avinesh Shankar forged 64 customers’ signatures on 115 annuity applications with their knowledge. While Shankar allegedly received $511,609 in advanced commissions for the deals, the annuities were never funded.
According to FINRA records, Shankar first registered with BBVA Securities in 2013, then with Pruco in 2019. Pruco Securities is Prudential’s broker/dealer and corporate RIA arm.
Starting in November 2022 and through the start of 2024, Shankar allegedly signed customers’ names on the 115 annuity applications using electronic signature software. FINRA claimed that none of the customers gave the broker permission to do so, and didn’t know he was signing them.
All the annuities were unfunded throughout the alleged scheme. When the annuity distributor reached out to Shankar about the annuities going unfunded, Shankar “provided false explanations.”
However, when 115 of the annuities went unfunded for 90 days after Shankar allegedly submitted them, Pruco tried to recoup the advanced commissions by deducting them from his next paycheck and carrying over the balance to Shankar’s next paycheck when the first one didn’t fully cover the commissions.
According to FINRA, Pruco approached Shankar about the annuity applications, and he “eventually admitted” that he’d forged the signatures to earn commissions. FINRA claimed that Pruco fired Shankar on Feb. 20, 2024, and at the time, he still owed Pruco $163,910.71 in unearned commissions related to the annuity applications.
Prudential did not comment as of press time. While Shankar could not be reached for comment, he allegedly submitted a comment defending his actions in the U5 listing regarding Pruco’s firing. According to Shankar, no client funds were ever taken without the client’s consent or awareness.
“The applications were solely submitted to secure client’s rates only in case they wished to proceed with business. If clients chose not to do business, Prudential reversed the advanced commissions that were paid to me,” he wrote. “The outstanding advanced commissions are currently being paid back to Prudential. Over 61% of the commissions owed have been repaid, and the remaining balance is arranged on a payment plan set up by Prudential.”
According to BrokerCheck, FINRA launched its investigation into Shankar’s alleged conduct in November. As part of the enforcement proceedings, FINRA called for monetary sanctions and for Shankar to pay “such costs of proceeding as are deemed fair and appropriate.”