NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Michael Wayne Claiborne (Principal)
AWC/2009017323101

Claiborne asked a customer if he could borrow approximately $600 to pay for his travel expenses and the customer agreed, using his credit card to pay for the expenses. Claiborne failed to notify his member firm of the loan, which he repaid in full, and was contrary to his firm’s procedures prohibiting registered representatives from borrowing money from customers.

Claiborne received a $1,000 check with the payee line left blank from the customer to deposit into the customer’s Roth Individual Retirement Account (IRA) with the firm; Claiborne made the check payable to himself and deposited it into his personal checking account and used the proceeds for his own use and benefit, thereby converting the funds. Claiborne admitted to his supervisor that he had deposited the check into his own account and subsequently returned the funds to the customer.

Michael Wayne Claiborne (Principal): Barred

Tags: Borrowing    Checks