Finra fined and suspended Lee Michael Generous, a former LPL representative and current registered investment advisor, for allegedly falsifying documents by failing to disclose he was signing them on behalf of his clients.  

Generous , who was a rep for LPL from 2015 to 2021, agreed as part of a settlement to a three-month suspension from associating with any Finra member in all capacities and a $5,000 fine. He neither admitted nor denied guilt.

From May 2020 through March 2021, Generous electronically signed 56 documents for 25 customers, some of whom were seniors, with the customers’ permission, according to Finra.

“None of the customers complained,” Finra said. 

Generous, who began his career at Fidelity Brokerage Services in 2010, is currently the founder of Generous Wealth Management of Norwell, Mass.—a firm he launched in 2022. He did not immediately respond to a request for comment.

The documents he signed included required records of the firm, including new account applications, account transfer forms, and opt-in forms for electronic prospectuses, according to the Letter of Acceptance, Waiver and Consent (AWC) he signed.

Generous also electronically signed the name of a fellow registered representative, who was the primary registered representative on customer accounts that they jointly serviced. In total, he signed 100 documents using the rep’s name with the rep’s permission, the self-regulatory organization reported.

Generous also falsely attested in an August 2020 compliance questionnaire that he had not signed or affixed another person’s signature on a document, Finra said.

By falsifying customer and registered reps’ signatures, Generous violated Finra rules for reps and caused LPL to maintain inaccurate books and records.  

Finra requires reps to “observe high standards of commercial honor and just and equitable principles of trade.” 

As a result, “signing or affixing another person’s name to a document with the other person’s prior permission but without indicating that it is being done on someone else’s behalf is falsification. Falsification is also a violation of FINRA Rule 2010,” Finra said.