Broker/Dealer and Account Executive Fraud and Misrepresentation Lawyer, Russell L. Forkey, Esq.

January, 2012:

Elva Luz Solis (CRD #5527297, Registered Representative, Dodge City, Kansas) submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Solis consented to the described sanction and to the entry of findings that she misappropriated $23,223 in cash premiums from customers of her member firm’s affiliated insurance company and another affiliated insurance company. The findings stated that Solis received cash premium payments totaling $6,465 from customers, entered the payments into the Agent’s Credit Advice (ACA) system, which generates receipts, and failed to promptly deposit and apply the money towards the customers’ insurance policies. Instead, she applied certain of the premiums toward earlier customers’ past due insurance policies by crediting the earlier policies. In addition, Solis used cash premiums for her own personal expenses, thus misappropriating the $6,465. The findings also stated that Solis’ customers paid her cash premiums totaling $16,758 for insurance policies with another insurance company, which the ACA system did not cover, and failed to place the premiums into a Premier Trust bank account, which would then be electronically swept from the bank directly to the insurance company. Instead, Solis applied certain of the premiums toward other customers’ past due insurance policies and used cash premiums to pay her personal expenses, thereby misappropriating the $16,758. The findings also included that in response to questions by her insurance company’s auditor, Solis admitted to using cash premium payments for personal reasons. Solis has repaid the $16,758 owed to the affiliated insurance company’s account, but to date has not repaid the insurance company account shortages in the amount of $6,465. (FINRA Case #2010025009001).