South Florida Arbitration & Litigation Lawyer Blog
Investment, Private Placement and Variable Annuity Fraud and Mismanagement, FINRA Arbitration Attorney, Russell L. Forkey, Esq.
February, 2011:
Steven Louis Morewitz (CRD #5022985, Registered Representative, Newport News, Virginia) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 18 months. The fine must be paid either immediately upon Morewitz’ 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, Morewitz consented to the described sanctions and to the entry of findings that he prepared and submitted to his member firm, fictitious mutual fund applications together with funds he owned constituting the minimum amount needed for a purchase. The findings stated that on each application, Morewitz signed the purported customer’s name without their knowledge or consent, and based on the applications, the firm opened accounts and affected the purchases. The findings also stated that Morewitz submitted the applications to create the false appearance that he had met the firm’s minimum production requirement, and in submitting the applications and causing the transactions to be affected, Morewitz caused the firm to retain and preserve false and/or inaccurate records. The findings also included that Morewitz prepared and submitted fictitious term life insurance applications to an affiliate of his firm without the knowledge or authorization of the customers identified on the applications. FINRA found that Morewitz signed the purported applicants’ names without their knowledge or consent, and submitted with each application funds he owned that were sufficient to pay the initial policy premium. FINRA also found that Morewitz submitted the applications to create the false appearance that he had met the firm’s minimum production requirement, and based on the applications, the affiliate issued the policies. The suspension is in effect from December 20, 2010, through June 19, 2012. (FINRA Case #2010022778501).