Jay Eng Suspended by FINRA For Allegedly Impersonating Potential Client
Jay Eng (CRD #: 2241817), a broker registered with Independent Financial Group, has been suspended by FINRA, according to his BrokerCheck record, accessed on February 28, 2023. Read on if you want to know more about his alleged conduct as a broker.
Suspension by FINRA
On January 23, 2023, Jay Eng consented to the entry of findings that he allegedly impersonated a potential client on a phone call to an annuity company in April 2020 and improperly retained private client information from both LPL Financial and Kinecta Wealth Management.
A Letter of Acceptance, Waiver & Consent (AWC) alleges that a prospective client contacted Jay Eng in April 2020 to begin the process of transferring his variable annuity to LPL Financial.
Jay Eng allegedly contacted the annuity company and used the potential client’s personal information, including their social security number, date of birth, and policy number, to present himself as the client. During the call, he allegedly obtained information about the annuity’s surrender timetable and charges.
The potential client allegedly did not authorize Jay Eng to impersonate him and was not aware that he had contacted the annuity company.
Additionally, the AWC alleges that Jay Eng printed client records on August 31, 2020, the night before his resignation from LPL Financial and Kinecta Wealth Management. These records allegedly contained client names, social security numbers, and account numbers and values. He allegedly used this information to pre-fill customer account transfer forms that he allegedly later electronically transmitted to clients for execution.
The AWC concludes that these allegations constitute violations of FINRA Rule 2010.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Jay Eng consented to the following sanctions:
- $10,000 fine
- 20-business day suspension
His suspension began on February 21, 2023, and will end on March 20, 2023.
You can read the full AWC here.
Investor Dispute
On January 4, 2021, an investor alleged that Jay Eng made misrepresentations in relation to the purchase of an alternative investment. This dispute was denied by the firm.
However, investors should know that firms don’t need to allow an external review before denying a dispute. Investors can still pursue FINRA arbitration after a denial and may be able to recoup their losses.
FINRA Rule 2020
FINRA Rule 2020 prohibits the use of fraudulent methods, like manipulation or deception, as they relate to the purchase and sale of securities. This includes the misrepresentation and omission of facts related to investments.
Resignation from LPL Financial and Kinecta Wealth Management
On September 1, 2020, Jay Eng resigned from LPL Financial and investment advisor Kinecta Wealth Management after allegedly impersonating a client when contacting a third-party annuity company to obtain information on the client’s behalf.
Background Information
Jay Eng has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 55 – Limited Representative-Equity Trader Exam
- Series 7 – General Securities Representative Examination
- Series 24 – General Securities Principal Examination
Jay Eng is a registered broker in 19 states and a registered investment adviser in California.
He has also worked for the following firms:
- Kinecta Wealth Management (CRD#:136597)
- LPL Financial (CRD#:6413)
- WM Financial Services (CRD#:599)
- Electronic Trading Group (CRD#:37453)
- Pulse Trading (CRD#:104022)
- Banc of America Securities (CRD#:26091)
- J.P. Morgan Securities (CRD#:15733)
- Chase Securities (CRD#:18718)
- Schwab Capital Markets (CRD#:2692)
- Bernard L. Madoff (CRD#:2625)
- Nationsbanc Montgomery Securities (CRD#:26091)
- Nationsbanc Investments (CRD#:16361)
Kurta Law Can Help
If you worked with Jay Eng and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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