Michael Terry Swingle of Clearwater Florida a stockbroker formerly registered with J.W. Cole Financial Inc. has been fined $5,000.00 and suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in unauthorized customer loan arrangements with the firm’s customers. Letter of Acceptance Waiver and Consent No. 2016051931501 (May 4, 2018).
According to the AWC, from August of 2014 to October of 2014, Swingle borrowed $118,500.00 from five customers of J.W. Cole Financial Inc. after having suffered from financial setbacks partially due to his gambling habit. Apparently, three of the customers who lent money to Swingle were elderly. In fact, the AWC stated that of the $118,500.00 borrowed, $96,000.00 came from two elderly customers. Swingle reportedly continued gambling after having received the funds from customers, and he still owes them $102,786.00.
The AWC stated that Swingle engaged in the customer loan arrangements without apprising the firm or obtaining its approval beforehand. The firm’s written supervisory procedures actually disallowed Swingle from entering into borrowing arrangements with customers of the firm in all circumstances. The AWC revealed that Swingle even confirmed his understanding of the firm’s policy through the attestation forms he completed. FINRA found that Swingle’s activities were violative of FINRA Rules 2010 and 3240.
Swingle was discharged from J.W. Cole Financial, Inc. on October 28, 2016, founded on allegations that he failed to inform the firm about his customer loan arrangements.
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