William Winchester III Barred from the Securities Industry  

LPL Advisor William Winchester Allegedly Borrowed Money from 3 Customers  

According to a Letter of Acceptance Waiver and Consent(AWC) on April 6, the Financial Industry Regulatory Authority (FINRA), the self-regulator who oversees brokers and brokerage firms, has reportedly barred William Winchester III (CRD #4404327) from the securities industry.  

Between March 2009 and September 2016, while associated with LPL Financial and, later, with Raymond James, Winchester reportedly borrowed more than $850,000 from three of his customers without notifying his member firm or obtaining the firm’s approval, according to the AWC.   

As a result, Winchester purportedly violated NASD Rule 23702 and FINRA Rules 3240 and 2010. Further, from October 2009 through August 2016, while associated with LPL and, later, with Raymond James, Winchester allegedly engaged in an outside business activity without providing prior written notice to either firm. Winchester allegedly served as co-executor to the estate of his former customer and received compensation for his services.   

As a result, Winchester reportedly violated NASD Rule 30303 and FINRA Rules 3270 and 2010. Between September 2016 and November 2017, Winchester also reportedly settled two customer complaints without notifying Raymond James. As a result, Winchester violated FINRA Rule 2010.   

FINRA Rules Violations

FINRA Rule 3240, also known as the “Borrowing from or Lending to Customers” rule, governs the conditions under which registered representatives of FINRA member firms may borrow money from or lend money to customers.  

FINRA Rule 3270 requires registered representatives to provide prompt written notice to their member firm before engaging in any outside business activity (OBA).  An OBA is defined as any business activity that a registered representative engages in that is not conducted on behalf of their member firm. Examples of OBAs can include consulting work, teaching, or even running a small business. The key distinction is that the activity is not related to the registered representative’s role at their member firm.    

FINRA Rule 2010 requires that member firms and their associated persons must act in the best interests of their customers and avoid any activity that would compromise their integrity or impartiality. The rule requires firms and individuals to maintain high standards of professional conduct, and to avoid any conduct that could be detrimental to the interests of investors or the securities markets.   

Rule 2010 also provides a framework for dealing with conflicts of interest. It requires firms to disclose any conflicts of interest that could affect their ability to provide unbiased advice or recommendations to their customers. Firms must also take steps to manage and mitigate conflicts of interest, such as establishing internal controls and supervisory procedures.   

William Winchester III – FINRA BrokerCheck Profile  

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.  

BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.  

According to his FINRA BrokerCheck profile, Winchester was affiliated with the following firms, among others.  
05/07/2020 – 05/05/2021, CADARET, GRANT & CO., INC. (CRD#:10641), Chattanooga, TN,   

B, 06/29/2012 – 03/13/2020, RAYMOND JAMES FINANCIAL SERVICES, INC. (CRD#:6694), CHATTANOOGA, TN  

B, 09/26/2007 – 07/25/2012, LPL FINANCIAL LLC (CRD#:6413), CHATTANOOGA, TN  

Winchester reportedly has three customer complaints on his record. Allegations reportedly include Breach of Fiduciary Duty, Negligence, Negligent Supervision, Suitability, Excessive Turnover, Breach of Contract, Negligent Hiring, Selling Away, among others.  

Broker Due Diligence  

Brokers and brokerage firms owe a duty of care and loyalty to their customers. The broker must use the standard of care and diligence needed to protect the customer’s interest. Failure to fulfill that duty may constitute negligence or malpractice by a broker. The duty of loyalty requires that the broker refrain from self-dealing and place the interests of the customer first.   

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.    

If you have suffered losses investing with William Winchester III, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.     

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.      

With over 40 years of securities law experience, including experience working at FINRA and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.    For more information, please visit our website, www.whitesecuritieslaw.com.