The Financial Industry Regulatory Authority has suspended and fined four Northwestern Mutual Investment Services reps and a Pruco Securities rep for allowing imposters to sit in on their behalf and complete the continuing education required to renew their licenses.
The reps, all New York-based, were suspended for one month, beginning February 5, and fined $5,000. They consented to the sanctions, without admitting or denying the findings, Finra said.
They include Michael L. Esposito of Melville, Tara A. Nesdill of Garden City, Joseph Duffy Collins of New York City, Maureen O’Donnell of Melville and Michael Hartnagel Jr. of Riverhead.
Finra noted that individuals who sell various insurance products, including securities such as variable annuities, must hold an insurance license, which is subject to renewal every two years and generally require licensees to complete 15 CE credits.
Esposito, who has been with Northwestern Mutual since 2016, had another person sit through the exam in August 2022, but in February 2023, he certified to the State of New York that he had personally completed the CE credits, Finra said.
Nesdill has been with Northwestern since October 2021 and was required to renew her license in October 2022. She certified to the State of New York that she had personally completed those CE credits, when in fact, someone else sat in for her.
Collins, who has been with the firm since 2019, was required to renew his license in August 2021. He had an imposter take the exam but certified to the State that he had personally completed those CE credits.
O’Donnell first obtained her insurance license in 1999, Finra said, noting that she was due to renew it in December 2021. She also had someone sit in on the exam for her in April 2021, but Finra said in June 2021, she certified to the State that she had personally completed the CE requirement to renew her license.
And Hartnagel, who had had his insurance license since December 2017, was required to renew it in November 2021. He, too, had another person take the exam for him, but certified to the State that he had personally completed those CE credits. Pruco fired Hartnagel in December 2023, after the allegations.
Finra said the reps violated Rule 2010, which states that “member firms and their associated persons ‘shall observe high standards of commercial honor and just and equitable principles of trade’ in the conduct of their business.” It added that “Rule 2010 encompasses any unethical, business-related misconduct regardless of whether it involves a security.”