FINRA fined and suspended Betty Lai Johnson aka Hung Fang Lai Johnson, formerly of Transamerica Financial Advisors, for impersonating a customer and effecting or causing an unauthorized liquidation of that customer's TRP 401(k) account, based on Johnson's recommendation that the customer use the 401(k) proceeds to purchase a variable annuity (VA), even after Johnson's client told TRP that she no longer wanted to liquidate her 401(k).
According to the report, after meeting with Johnson (CRD #4710847) to discuss the 401(k) liquidation and VA purchase, the customer changed her mind, and subsequently advised TRP during a phone conversation that she no longer wished to liquidate her 401(k) account.
The investigation states that four days after this phone call, and unbeknownst to the client, Johnson contacted TRP by telephone and purportedly impersonated her client, giving TRP verbal authorization to liquidate the funds in the 401(k) account and use the proceeds to purchase a VA, resulting in the 401(k) account's liquidation against the customer's wishes, and without her knowledge, authorization or consent.
Fortunately for the customer, TRP sent her a notice several days later that the liquidation transaction had been processed, and she alertly contacted TRP to inquire and dispute the transaction, which resulted in its reversal, as well as Transamerica's internal investigation into Johnson, which concluded with the firm opting to discharge Johnson and terminate her employment.
If you have invested with Betty Lai Johnson aka Hung Fang Lai Johnson at Transamerica Financial Advisors, or with any broker or financial adviser who has impersonated you and this inappropriate impersonation has resulted in unauthorized account activity, such as liquidation, withdrawal, fees, charges, or other financially harmful results, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.