Beliveau Bays Under FINRA Scrutiny: Disciplinary Action Details
Background
Beliveau Bays (CRD #: 6034987) is a financial advisor currently facing investigation by the Financial Industry Regulatory Authority (FINRA).
Registration History
Bays was a registered representative with FINRA from May 2012 to March 2021. He lost his job in March 2021 as a result of forging customer signatures on account applications and misrepresenting key person life insurance applications.
Bays was then registered with another of their member firm from May 2021 to October 2021. He is no longer registered or associated with a FINRA member firm, but he is still subject to their jurisdiction because the complaint was filed within two years after his termination and because he provided false information to them during the investigation.
| Employment Dates | Employer Name | Position | Investment Related |
|---|---|---|---|
| 07/2019 – 03/2021 | LPL Financial, LLC | Registered Representative | Yes |
| 10/2016 – 07/2019 | Woodbury Financial Services Inc | Registered Representative | Yes |
| 03/2016 – 10/2016 | Bays Capital Management Inc | Owner | No |
| 02/2012 – 03/2016 | Merrill Lynch, Pierce, Fenner & Smith Inc | Financial Advisor | Yes |
Misconduct Allegations
As of September 8, 2023, FINRA has preliminarily determined to recommend disciplinary action against Beliveau Bays based on allegations that he breached Rule 2010. The allegations suggest that Bays signed the names of LPL customers on account opening documents without informing them.
Additionally, the American Regulatory Authority alleges that Bays violated Rule 8210 by providing false, incomplete, and misleading responses to FINRA’s requests for testimony. Furthermore, he is accused of contravening Rule 4511 by forging customer signatures and submitting customer applications with inaccurate information.
Details of Allegations on Beliveau Bays
Violations of FINRA Rules 2010, 8210, and 4511
In July 2019, Respondent Beliveau Bays forged the electronic signatures of four customers on various account applications and transfer forms while associated with LPL Financial LLC (LPL) without their knowledge or permission. This conduct constituted violations of Rules 2010, 4511, and 2010.
Approximately six months later, in January and February 2020, Bays engaged in unethical behavior by signing and submitting insurance applications containing false statements and falsely claiming to an insurance company that he was neither registered with the regulatory authority nor associated with a broker-dealer.
Bays’ actions violated Rule 2010. Bays’ misconduct continued in 2021 when FINRA commenced an investigation into his electronic signature forgeries and inconsistencies related to life insurance applications.
During this investigation, Bays repeatedly lied to the Financial Industry Regulatory Authority in response to requests for documents, information, and on-the-record testimony. Notably, Bays lied about being the beneficiary of multi-million-dollar life insurance policies, the status of the policies, his bank accounts, his brokerage accounts, and his aliases. These actions constituted violations of Rules 8210 and 2010.
Key Points
- Forgery and Providing False Information: Bays allegedly forged customers’ electronic signatures on account applications and an account transfer form without their knowledge or permission. Additionally, he is accused of providing false, incomplete, and misleading responses to FINRA requests for information and documents and during on-the-record testimony in connection with its investigation into allegations in Bays’ initial Form U5 and customer complaints reported in an amended Form U5.
- Misleading Statements to Insurance Companies and Regulatory Authority: Bays is alleged to have provided false and misleading statements to insurance companies, FINRA, and his firm.
- Electronic Signature Violations: Bays electronically signed the names of LPL customers on account opening documents without the customers’ knowledge or permission, which is a violation of the rules.
Conclusion
In conclusion, Beliveau Bays‘ alleged misconduct involves forging customer signatures, misleading insurance companies and FINRA, and providing false or misleading responses during an investigation.
His actions demonstrate violations of FINRA Rules 2010, 8210, and 4511. Bays poses a risk to investors and the financial industry due to his unethical behavior and repeated attempts to deceive authorities.
The Financial Industry Regulatory Authority’s preliminary determination to recommend disciplinary action against Bays is justified based on the evidence presented in the investigation. This case highlights the importance of maintaining ethical standards and adhering to regulatory requirements in the financial industry.
