September 11, 2014
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Michael S. Warner submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Michael S. Warner, Respondent (AWC 2014041874601, September 4, 2014).
Warner joined the industry in 2010 when he associated with Chase Investment Services Corporation ("CISC"). In 2012, Warner's registration was transferred to J.P. Morgan Securities, LLC ("JPMS"). During his dates of registration, he was also affiliated as a private client banker with JPMorgan Chase Bank, N.A. ("JPM Bank")
The AWC alleges that between March 2013 and April 2014, Warner accessed a JPM Bank customer's personal checking account, purportedly to assist the customer with paying the customer's bills.
Okay, that seems like a nice gesture.
But for two additional bits of information.
One, in addition to paying the customer's bills, Warner also electronically paid $11,134 in his own credit card and cable bills - and, no, the customer did not authorize or consent to those additional payments.
Two, the customer is bedridden and suffers from multiple sclerosis.
The AWC asserts that JPM Bank fully reimbursed the customer, and that Warner fully reimbursed the bank. According to online FINRA records, on June 11, 2014, JPMS reported that JPM Bank had permitted Warner to voluntarily resign based upon allegations that:
REGISTERED REP., IN THE CAPACITY OF AN AFFILIATE BANK EMPLOYEE, VOLUNTARILY RESIGNED WHILE UNDER INTERNAL REVIEW AFTER ADMITTING TO PAYING PERSONAL BILLS TOTALLING $11,134.63 FROM A BANK CUSTOMER ACCOUNT WITHOUT THEIR KNOWLEDGE OR CONSENT
FINRA alleged that Warner's conduct constituted a violation of FINIRA Rule 2010, and in accordance with the terms of the AWC, a Bar in all capacities was imposed upon Warner.
Bill Singer's Comment
I mean, seriously, they just allowed him to resign? You don't get fired for this type of grotesque theft? On a more positive note, compliments to FINRA for resolving this quickly and barring Warner.