Certified Financial Planner (CFP) and former life accident and sickness insurance agent, Jeremy Yuan Wong, has been banned from applying for an insurance license for three years and is fined $10,000 plus costs, after Wong changed the mailing addresses for several clients to his own business and personal addresses, and cashed checks issued to two clients through his personal bank account.
Licensed since 1995, Wong contends that the first client was moving with his family back to China in 2014 and asked him to handle their insurance and investment statements. Wong also says the second client is the wife of his cousin and that he had been helping that client’s family since they landed in Canada by allowing them to use his address.
In the first client’s case, evidence suggests Wong endorsed cheques issued totalling $6,958.76 when the client requested to cancel two Registered Education Savings Plan (RESP) accounts. In the second client’s case, he reportedly endorsed checks issued on five separate occasions, totalling $107,556.72. Wong claimed the client did not want to alert her husband, who was working in China and sending monies for the family’s care in Canada, to the family’s financial troubles by cashing checks for withdrawals from their policies. The insurer initiating the investigation against Wong says the first client claims the withdrawals were made without his request.
The requests to cash checks for both clients were reportedly made in face-to-face interactions. Wong did not request written instructions. On being investigated it was further found that he does not keep records of any interactions with clients and retains only a copy of their original application forms and contact information.
Evidence presented by the insurer who reported Wong indicated that he requested address changes for five clients, using his own business and personal home addresses. The insurer also says Wong asked the insurer to refrain from reporting him.
“Council rejected the licensee’s assertion that he did not know that he could not help his clients in this manner,” states the intended decision made by the Insurance Council of British Columbia. “The licensee was the nominee of the agency with more than 25 years of experience in the industry. The licensee knew or ought to have known that his conduct was improper.” The council also says it felt the transactions were suspicious in nature and spoke to Wong’s credibility, generally.
“Council views the licensee’s conduct to be a serious breach of the council rules,” the decision states. “It is appropriate for the licensee’s licenses to be cancelled and for the licensee to be fined.” They add that the misconduct was made more egregious because of Wong’s experience and position.
In addition to cancelling Wong’s license for three years and fining him $10,000, Wong must also pay costs in the amount of $875. He is also prohibited from acting as a shareholder, partner, officer, director or employee of any licensed insurance agency for the three years his license is suspended.
