According to FINRA, Jay William Eng was fined $10,000 and suspended from association with any FINRA member in all capacities for 20 business days for impersonating a prospective customer on a telephone call with an annuity company and for improperly retaining and using nonpublic personal customer information from his former firms.

Eng impersonated a prospective customer on a telephone call to obtain information about the annuity's surrender timetable and charges. Eng used the prospective customer's social security number, date of birth, and policy number to convince the annuity company that he was the prospective customer. Although the prospective customer had requested that Eng transfer a variable annuity to Eng's member firm, the prospective customer was not aware that Eng contacted the annuity company and did not authorize Eng to impersonate him.

Additionally, Eng improperly retained nonpublic personal customer information from his former firms, without the firms' or the customers' knowledge or consent, and subsequently used that information to transfer customer accounts to his new firm. The night before Eng resigned from his former firms, he printed customer records including customer names, social security numbers, account numbers, and account values. After becoming associated with his current firm, Eng pre-filled customer information, including social security numbers and account numbers, on customer account transfer forms that were transmitted electronically to customers for execution. The forms were used to effectuate account transfers to Eng's new firm.

The suspension was in effect from February 21, 2023, through March 20, 2023.

This case involves two separate violations, both of which demonstrate a troubling disregard for proper procedures and customer privacy. First, impersonating a customer on a phone call with an annuity company is a serious violation that involves deception and unauthorized use of personal information. Even if Eng believed he was helping the customer by obtaining information, he had no authority to impersonate the customer.

Second, Eng's retention and use of confidential customer information from his former firms raises significant privacy and data security concerns. Customer information belongs to the firm and the customers, not to individual brokers. When brokers change firms, they should not take customer information with them.