n August 5, 2019, KAREN PAEK CRD#: 5985441, a former PRUCO SECURITIES of El Segundo, California, was barred by FINRA from acting as a broker or otherwise associating with a broker-dealer firm following allegations that Paek created, signed and submitted six fictitious variable annuity applications to meet her minimum production requirements at Pruco Securities.
FINRA’s findings stated that the variable annuity applications were made in the names of former clients at her prior employing firm, insurance clients of her employing firm, and a prospective client at her employing firm.
Allegedly, Karen Paek forged the individuals electronic signatures on all of the applications. FINRA states that none of the individuals were aware of, or authorized the applications, and the annuities were never funded. According to FINRA for five of the variable annuity applications, Karen Paek allegedly created fictitious third-party brokerage statements, which she submitted to the firm to give the false impression the variable annuities would be funded from third-party accounts. The firm allegedly discovered Paek’s falsifications and forgeries during a review of unfunded variable annuity applications.
According to FINRA, Karen Paek received approximately $23,000 in advance commissions for the fictitious variable annuity applications, all of which the firm recovered. The findings also stated that by submitting fictitious variable annuity applications and accompanying third-party brokerage statements, Paek allegedly caused the firm’s books and records to be inaccurate.
Allegedly, Paek engaged in this activity between November of 2016 and December of 2017, and FINRA began their investigation in March of 2018 after Pruco discharged Karen Paek in February of 2018.
According to FINRA’s BrokerCheck, Karen Paek, had been in the securities industry for six years and was registered with the following firms:
06/17/2015 – 03/02/2018 PRUCO SECURITIES LLC – EL SEGUNDO, CA
10/17/2011 – 05/28/2015 FIRST INVESTORS CORPORATION – MONROVIA, CA
If you or a loved one experienced losses due to former Pruco Securities of El Segundo, CA, broker, Karen Paek, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis—no fee if no recovery.