The U.S. Financial Industry Regulatory Authority (FINRA) has fined Synovus Securities, Inc. $315,000 and issued a censure after claiming it found that the firm failed to properly supervise electronic signatures, leading to widespread forgery and falsification of customer and employee documents.
FINRA Fines Synovus Securities $315,000
According to FINRA’s Letter of Acceptance, Waiver and Consent, the violations occurred between January 2022 and September 2025.
Synovus reportedly failed to maintain a supervisory system capable of detecting electronic signature forgery, resulting in more than 100 customers’ signatures being forged across over 150 documents and over 500 forged employee signatures.
The misconduct is said to have left the firm with “hundreds of inaccurate books and records.”
The regulator said Synovus breached several key rules, including FINRA Rules 3110, 4511, and 2010, as well as Section 17(a) of the Securities Exchange Act of 1934 and Exchange Act Rule 17a-3, which require firms to maintain accurate books and records.
FINRA added that the firm failed to investigate red flags or implement adequate controls, noting that its written supervisory procedures did not address e-signatures until April 2024.
The problem was uncovered only after operations staff noticed irregularities in September 2023. Synovus later confirmed that all affected customers had authorised the transactions and implemented new safeguards.
The firm consented to the sanctions without admitting or denying FINRA’s findings. The regulator said the case underscores the importance of robust oversight for digital documentation and electronic authentication processes in the securities industry.
