Opinion ID: 617013
Heading Depth: 2
Heading Rank: 2

Heading: Compliance Office Investigation and Recommendation

Text: Following their ride-along, Bielecki told Overly to stop using her scanned signature to open accounts until he looked into the policy further. Bielecki then reported to KeyBank's compliance office that Overly used scanned or cut and pasted signatures. Bielecki also reported that Overly encouraged bankers to sell off-menu products. This report triggered an investigation. The compliance office told Bielecki to make certain both procedures stopped. Bielecki reiterated this to his entire staff, reminding them that in opening new accounts each financial advisor should personally sign a new account application before submitting it. The next day, Overly spoke with Bielecki and his boss, Wally DePasquale, the general regional manager. During this conversation, Overly was told that using scanned signatures and advising bankers to sell outside the product list were both improper procedures. Overly was asked if any other financial advisors in the territory followed similar practices. Although she did not know of anyone personally, Overly mentioned being told that Kirk Green, also a financial advisor, failed to meet with some clients before signing paperwork to open new accounts. [1] Bielecki reported Overly's allegations about Green to the compliance office. He also questioned Green about procedures used to open accounts. Green denied that he ever signed new account paperwork without first meeting the customer. The compliance office told Bielecki to remind his employees, including Green, about the company policy requiring advisors to be present with the customer when signing an account document. As part of their investigation, the compliance office and Bielecki also contacted bankers working with Overly to ask them about selling financial products outside KeyBank's product menu. One banker admitted making unauthorized sales of variable annuity products without Overly's assistance. After its investigation, the compliance office recommended that Overly be terminated. Bielecki and DePasquale challenged the recommendation, arguing that Overly should remain employed at KeyBank. Later in the month of May, Overly was given a formal written warning from the compliance office and a $1000 fine for violations of the fraud and Know Your Client policies at KeyBank and the National Association of Securities Dealers Rule 2310. Additionally, a male banker who admitted to selling variable annuities in violation of KeyBank policy was fined $100.