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FINRA Fines Former LPL Broker for Impersonating a Client

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The Financial Industry Regulatory Authority has suspended and fined Jay W. Eng for allegedly impersonating a client customer and retaining their information without their knowledge.

Eng first became registered with FINRA in 1992. Eng was registered through LPL Financial LLC as a general securities representative from May 2004 to September 2020. He was also registered through Kinecta Financial & Insurance Services (formerly, Kinecta Wealth Management) as a general securities representative from June 2006 to September 2020.

While associated with LPL and Kinecta, Eng worked inside a branch of the Kinecta Federal Credit Union located in Torrance, California. Pursuant to an agreement between LPL and Kinecta, Eng and other registered individuals offered securities and advisory services through LPL using the name Kinecta Wealth Management.

On Sept. 21, 2020, and Sept. 23, 2020, LPL and Kinecta filed Uniform Termination Notices for Securities Industry Registration disclosing that Eng had voluntarily terminated his association with the firms. Both firms indicated the terminations occurred after allegations were made that Eng had “contacted [a] third-party annuity company on behalf of a prospective client and represented he was the policy holder to obtain information about the annuity.”

In April 2020, Eng allegedly impersonated the prospective client on a telephone call with an annuity company to obtain information about the annuity’s surrender timetable and charges in violation of FINRA Rule 2010. Additionally, following his resignation from LPL and Kinecta in September 2020, Eng purportedly improperly retained nonpublic personal customer information from those firms, without the firms’ or the customers’ knowledge or consent and subsequently used that information to transfer customer accounts to his new firm.

Since September 2020, Eng has been registered with FINRA as a general securities representative through another FINRA member firm, Independent Financial Group LLC, according to BrokerCheck.

FINRA fined Eng $10,000 and gave him a 20-business day suspension from associating with any FINRA member in all capacities.

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