FINRA

CARLOS A. SHIBATA FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Other

Suspension

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, CARLOS A. SHIBATA'S FINRA REGISTRATION IS SUSPENDED ON JANUARY 8, 2009 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO FINRA REQUESTS TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMINISTRATIVE RELEASE NO. 34-51804, INVESTMENT ADVISERS ACT 40-2393, JUNE 8, 2005; ON MARCH 21, 2005, SHIBATA PLED GUILTY TO TWO COUNTS OF WIRE FRAUD IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTIONS 1343 AND 1349 BEFORE THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, IN UNITED STATES V. CARLOS A. SHIBATA, CASE NO. 04- 20770-CR-HIGHSMITH. THE COUNTS OF THE INDICTMENT TO WHICH SHIBATA PLED GUILTY ALLEGED, AMONG OTHER THINGS, THAT BETWEEN DECEMBER 2003 AND JUNE 2004, SHIBATA DEFRAUDED A CUSTOMER OF HIS MEMBER FIRM AND OBTAINED MONEY AND PROPERTY BY MEANS OF MATERIALLY FALSE AND FRAUDULENT STATEMENTS, BY USE OF WIRE COMMUNICATION, IN INTERSTATE COMMERCE. THE COUNTS OF THE INDICTMENT TO WHICH SHIBATA PLED GUILTY ALSO ALLEGE THAT SHIBATA DEVISED AND ATTEMPTED TO DEVISE A SCHEME WHICH CAUSED A FRAUDULENT WIRE TRANSFER OF APPROXIMATELY $290,000 AND AN ATTEMPTED WIRE TRANSFER OF $150,000 FROM A PUBLIC CUSTOMER FOR SHIBATA'S OWN PERSONAL BENEFIT. THE FRAUDULENT WIRE TRANSFER OF APPROXIMATELY $290,000 RESULTED FROM THE LIQUIDATION OF $295,000 OF SECURITIES OWNED BY SHIBATA'S CUSTOMER (THE ADDITIONAL $5,000 WAS FOR FEES AND EXPENSES INCURRED). THE ATTEMPTED WIRE TRANSFER OF $150,000 WAS FOR THE PURCHASE OF A HIGH-END AUTOMOBILE BY SHIBATA.

Order

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WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN, RESPONDENT SHIBATA CONSENTS TO THE ENTRY OF THIS ORDER. ACCORDINGLY, PURSUANT TO SECTION 15(B)(6) OF THE EXCHANGE ACT AND SECTION 203(F) OF THE ADVISERS ACT, HE IS BARRED FROM ASSOCIATION WITH ANY BROKER, DEALER, OR INVESTMENT ADVISER.

NASD

NASD RULES 2110, 8210 - RESPONDENT CONVERTED $290,000 OF CUSTOMER'S FUNDS; FAILED TO APPEAR TO GIVE TESTIMONY AND FAILED TO PROVIDE DOCUMENTS REQUESTED BY NASD.

Acceptance, Waiver & Consent(AWC)

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WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SHIBATA CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY.