The Financial Industry Regulatory Authority Inc. on Thursday barred a financial advisor who borrowed more than $850,000 while registered with LPL Financial and later Raymond James Financial Services Inc.
The registered rep, William F. Winchester III, was registered with LPL Financial in Chattanooga, Tennessee, from 2007 to 2012 and then with Raymond James Financial Services until 2020, according to his BrokerCheck profile. Financial advisors' borrowing money from clients is generally against brokerage industry rules.
Winchester's attorney, N. Nancy Ghabai, said the former financial advisor had no comment about the matter. Winchester agreed to the settlement without admitting to or denying Finra's findings.
Spokespersons from LPL Financial and Raymond James did not return calls to comment on Friday morning.
According to Finra, between March 2009 and September 2016, while Winchester was registered with LPL and then Raymond James, he borrowed more than $850,000 from three of his customers without notifying his broker-dealer at the time or getting the firms' written approval.
During the same period of time, Winchester "engaged in an outside business activity without providing prior written notice to either firm," according to Finra. "Specifically, Winchester served as co-executor to the estate of his former customer and received compensation for his services," which is also a violation of securities industry rules. He received $45,000 in compensation for that work, according to Finra.
Winchester also settled two customer complaints privately without notifying Raymond James Financial Services.
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