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.

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