Kathy Lynn Gallagher (CRD #2189903, Associated Person, Pocatello, Idaho) submitted an Offer of Settlement in which she was barred from association with any NASD member in any capacity. Without admitting or denying the allegations, Gallagher consented to the described sanction and to the entry of findings that she misused $218,558.00 of public customers’ funds intended to be invested on the customers’ behalf, and rather than depositing the funds into the customers’ accounts as instructed, Gallagher caused the funds to be deposited into a bank account she controlled without the customers’ knowledge, authorization or consent. The findings stated that Gallagher forged, or caused to be forged, a registered representative and public customers’ signatures on Investment Distribution Forms, causing funds to be wired from the customers’ accounts to accounts under her control without the customers’ knowledge or authorization to conceal her misuse of funds. The findings also stated that Gallagher falsified books and records, and forged documents and customers’ signatures in order to conceal her misuse. (NASD Case #2005000863701)