William Winchester III Barred by FINRA

According to FINRA’s BrokerCheck, on April 6, 2023, WILLIAM FORREST WINCHESTER III (William Winchester III) was barred by FINRA for allegedly borrowing money from clients and concealing the loans from compliance officers.

Without admitting or denying FINRA’s findings, William Winchester III consented to the sanction and to the entry of findings that he allegedly borrowed more than $850,000 from his clients without notifying the member firm with which he was associated or obtaining the firm's prior written approval.

FINRA’s findings alleged that William Winchester III never disclosed to his firm that he had borrowed money from his clients. Winchester allegedly falsely answered "no" on annual questionnaires that asked whether he had borrowed money from any client.

The FINRA report stated that after one of Winchester's clients passed away, Winchester agreed to serve as a co-executor of the client's estate. While registered with FINRA, William Winchester III allegedly borrowed money from the estate. FINRA alleges Winchester signed a promissory note to the beneficiary of the estate, who was also his client, to establish repayment terms for the funds Winchester had borrowed from the estate. FINRA stated that at the time Winchester entered into this promissory note, the firm prohibited its registered representatives from borrowing from clients. Winchester was terminated from the firm, and was in the process of repaying the beneficiary the amounts borrowed according to the terms of an agreement.

FINRA’s findings also alleged that William Winchester III engaged in an undisclosed outside business activity (OBA). Winchester allegedly received $45,000 in compensation for his services as co-executor of his client's estate. FINRA alleges Winchester did not disclose to the firm his appointment as co-executor of his client’s estate, and also failed to disclose that he was serving as co-executor of his client's estate when he was associated with another firm. According to FINRA, William Winchester III twice falsely represented on the firm's compliance questionnaires that he was not acting as an executor of any individual's estate.

According to FINRA’s report, Winchester allegedly entered into settlement agreements with clients without notifying the firm. Winchester allegedly did not disclose the promissory note that he signed to the beneficiary of his deceased client's estate to the firm and also did not disclose a settlement agreement with one of his clients relating to $380,000 he had borrowed from the client.

According to a recent article in Financial Advisor IQ, in 2009, William Winchester III, was working out of an LPL Financial branch in Chattanooga, Tennessee, when he allegedly borrowed $380,000 from one client and $350,000 from another. In 2012, Winchester joined Raymond James Financial Services in Chattanooga. According to the FAIQ article, in 2016, he again borrowed money from a client, in violation of Raymond James policy. Winchester repaid the two loans to LPL customers and was in the process of repaying the Raymond James client in February 2020 when he was fired by Raymond James over allegations of having entered into loan agreements with clients according to the article. In 2020, Winchester agreed to pay a fine of $45,000 to resolve a Tennessee Securities Division investigation of the unreported loans, which FINRA alleged totaled more than $850,000.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, William Winchester III, was in the securities industry for 18 years and was listed with 6 firms.  Winchester has 6 disclosures on his FINRA CRD report, 3 are “Customer Disputes.” According to the FAIQ article, in November 2021, a client agreed to accept $62,500 to settle her allegation that Winchester set up a trust account for the purpose of converting funds. Also in November 2021, a client accepted $160,000 to settle an allegation that Winchester borrowed money from a client’s account without the client’s consent. In April 2018, one of Winchester’s clients allegedly accepted $7,500 to settle with the firm a claim of unsuitable investments.

If you’ve experienced financial losses due to the actions or recommendations of William Winchester III, formerly of LPL Financial and Raymond James Financial, both of Chattanooga, TN, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents our clients nationwide before FINRA on a contingency basis, no fee to you if no recovery.