FINRA Bars Former LPL and Raymond James Advisor Who Improperly Borrowed $850,000 From Clients

Posted on April 12th, 2023 at 1:16 PM
FINRA Bars Former LPL and Raymond James Advisor Who Improperly Borrowed $850,000  From Clients

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has barred a Chattanooga-based financial advisor who improperly borrowed at least $850,000. 

The advisor, William Winchester III, was registered with LPL Financial between 2007 and 2012 prior to working at Raymond James until 2020, according to BrokerCheck. Industry rules typically prohibit financial advisors from borrowing funds from their clients. Winchester agreed to the bar without admitting or denying any of FINRA’s investigatory findings. While he was registered with LPL and then Raymond James, Winchester allegedly borrowed at least $850,000 from three clients between March 2009 and September 2016 without receiving approval from either firm, according to FINRA.

Furthermore, FINRA alleged that Winchester engaged in an unapproved outside business activity (OBA) where “he served as co-executor to the estate of his former customer and received compensation for his services.” Winchester generated $45,000 in compensation from the OBA, according to FINRA. Also, Winchester privately settled two customer complaints without notifying Raymond James or LPL.


Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive



I cannot thank you enough for your efforts. You have proven to be a valuable resource

Jim T.


September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.