The Financial Industry Regulatory Authority (FINRA) suspended broker Fong I. Cheang of Diamond Bar, California, through November of 2013 for failing to update her Form U4 to indicate she had been charged with a felony and pled no contest to that charge. The Authority additionally fined Cheang $5,000 for the omission, which FINRA claims resulted in her U4 document containing "inaccurate, false and materially misleading information."
The findings allege that while Cheang was employed by Citibank/Citigroup, she failed to update her Form U4 to reflect two felony charges on December 19, 2006 and a third on May 11, 2007, to which she pleaded no contest.
Specifically, in 2006, Cheang was indicted in the Los Angeles Superior Court for felony insurance fraud she allegedly had committed while employed at Citicorp. On February 2, 2007, she pled "no contest" to the two charges. After agreeing to cooperate with the Los Angeles County District Attorney and local law enforcement during any subsequent investigations and pay $1,917 in restitution, on May 11, 2007, she was charged with a third felony and pled "no contest." It was at this point, May 11, 2007, FINRA considered Ms. Cheang to have been statutorily disqualified from working in a registered capapcity in the securities industry. In November 2008, Cheang withdrew her no contest plea and all three charges were dismissed.
FINRA found that Cheang failed to report the felony charges and no contest plea(s) as was required as a condition of her registration with FINRA. Thus FINRA found that Cheang's failure to amend her Form U-4 while associated with Citibank resulted in the document containing inaccurate, false and materially
misleading information. As part of settling her disciplinary matter with FINRA, Chaeng did not admit or deny this finding or the discipline imposed.
If you invested with Fong I. Cheang during the period FINRA claims she should have been statutorily disqualified—May 11, 2007 through November 26, 2008—or have invested with another broker or firm who has failed to disclose a criminal history, and thisomission has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.