FINRA Suspends Former J.W. Cole Broker for Borrowing from Clients to Cover Gambling Losses
The Financial Industry Regulatory Authority has suspended a former J.W. Cole Financial broker for 18 months for borrowing money from multiple clients, the majority of whom were elderly, according to a letter of acceptance, waiver, and consent filed late last week.
The Financial Industry Regulatory Authority has suspended a former J.W. Cole Financial broker for 18 months for borrowing money from multiple clients, the majority of whom were elderly, according to a letter of acceptance, waiver, and consent filed late last week.
Between August 2014 and October 2016, while registered with J.W. Cole, Michael Swingle borrowed a total of $118,500 from five firm customers, of which approximately $103,000 remains outstanding. After he self-reported the loans to J.W. Cole in September 2016, the firm terminated his registration.
The regulators claim that Swingle borrowed the funds “as a result of deteriorating financial circumstances caused in part by gambling.” He borrowed a total of $96,000 from one elderly couple and allegedly continued to gamble after receiving the loan proceeds.
Swingle obtained his Series 6, 22, and 63 licenses in 1981 and has been registered at a number of FINRA member firms before associating with J.W. Cole in August 2007.
Borrowing money from customers is a violation of J.W. Cole policy and FINRA Rules 3240 and 2010. Swingle agreed to pay a $5,000 fine in addition to the 18-month suspension.
