Douglas Richard Smith of Financial Advisers of America in Newbury Park, CA

Douglas Richard Smith was terminated from his position at Independent Financial Group in January 2008, after it was alleged the registered principal had forged his client’s signature in order to complete an unauthorized variable annuity transaction. FINRA launched its own investigation on the matter in August 2009, claiming Smith had liquidated variable annuity account in order to purchase another variable annuity without his client’s consent.

The forging of customer signatures are taken seriously by both FINRA and the SEC, who view it as a major act of fiduciary responsibility. According to FINRA’s disciplinary report, Smith went to great lengths to conceal the transaction from his client, forging an official document using his company’s letterhead and the phony signature.

In 2001, Smith also accepted a censure from the National Association of Securities Dealers misleading a customer to think he was guaranteed profits on a high yield bond fund. Prior to his tenure for Independent Financial he had worked for Sentra Securities from June 1995 to October 2005. Smith is currently employed by Financial Advisers of America in Newbury Park, CA. Since FINRA’s investigation is still pending, Smith is currently free to fork for any licensed brokerage firm.

We are currently investigating Mr. Smith. If you or an organization with which you are affiliated have entrusted your money to Mr. Smith, we would like to hear from you.

FURTHER READING:

In October 2009, FINRA announced its investigation of Douglas Richard Smith. FINRA issued the following report regarding disciplinary actions relating to Smith:

Douglas Richard Smith (CRD #1845966, Registered Principal, Newbury Park, California) was named as a respondent in a FINRA complaint alleging that, without the customer’s knowledge, authorization and consent, he effected the surrender and liquidation of a variable annuity in the customer’s account, and used the proceeds to purchase a variable annuity issued by another insurance company for the customer’s account. The complaint alleges that, to effect the unauthorized transactions for the customer, Smith, without the customer’s knowledge, authorization and consent, affixed, or caused to be affixed, the customer’s signature and/or initials on documents. The complaint also alleges that Smith stamped the document with the firm’s medallion signature guarantee stamp and placed his signature on the stamp signature line, guaranteeing the customer’s signature as genuine. (FINRA Case #2008012211601)