The Financial Industry Regulatory Authority has accused a former Pruco Securities representative of falsifying and forging life insurance applications for two former customers and failing to respond to requests for information relating to the violations.
Finra said that from April 2019 through August 2019, Alon Zak, working at Pruco's Los Angeles office, created three fictitious life insurance policy applications for two former insurance customers and submitted them to Pruco Securities’ insurance affiliate. He also electronically affixed their signatures on the applications without their knowledge or consent, Finra said.
In July 2019, Finra said Zak also submitted a fake life insurance policy application for a firm customer, also with an unauthorized electronical signature.
Zak, the complaint said, registered with Finra in June 2018 as an investment company and variable contracts products representative through Pruco Securities and also worked as an insurance agent for the firm’s insurance affiliate, the Prudential Insurance Co. of America. He was fired by the company in January 2020 for his misconduct relating to the fictitious insurance policies, Finra said.
The complaint said the two former customers purchased the policies from Zak in 2018 when he registered with another firm prior to Pruco Securities. According to his BrokerCheck profile, Zak was with MML Investor Services from July 2017 to June 2018.
The customers did not purchase any additional life insurance policies from Zak, nor did they authorize Zak to purchase a life insurance policy with either Sherman Oaks, Calif.-based Pruco Securities or its affiliate, the complaint said.
In one instance, the fake application contained the incorrect email, home address and bank account information of the customer, even though Zak stated it was completed by the customer in person. It also listed Zak’s phone number instead of the customer’s, the complaint said.
In another instance, the complaint said, Zak falsely identified the customer as his relative on the application, which also contained an outdated home address for the customer and stated that it was completed in person by the customer.
The applications were either closed out without approval because Prudential Insurance was unable to obtain additional information necessary to complete them or in one case, Zak withdrew the application, and the policy was never issued, Finra said.
Finra said Zak failed to respond timely to two requests for information and documents issued pursuant to Finra Rule 8210. The complaint said three months after the deadline had passed and after he was notified of his suspension, Zak provided partial information to the requests, at which time he was given additional time to provide more information.