FINRA

Without admitting or denying the findings, Winchester consented to the sanction and to the entry of findings that he borrowed more than $850,000 from his customers without notifying the member firm with which he was associated or obtaining the firm's prior written approval. The findings stated that Winchester never disclosed to his firm that he had borrowed money from his customers. Winchester also falsely answered "no" on annual questionnaires that asked, among other things, whether he had borrowed money from any customer. In addition, after one of Winchester's customers passed away, he agreed to serve as a co-executor of the customer's estate. While registered with FINRA, Winchester borrowed money from the estate. Winchester signed a promissory note to the beneficiary of the estate, who was also his customer, to establish repayment terms for the funds he had borrowed from the estate. At the time Winchester entered into this promissory note, the firm prohibited its registered representatives from borrowing from customers. At the time Winchester was terminated from the firm, he was in the process of repaying the beneficiary the amounts borrowed pursuant to the terms of an agreement. The findings also stated that Winchester engaged in an undisclosed outside business activity (OBA). Winchester received $45,000 in compensation for his services as co-executor of his customer's estate. Winchester did not disclose to the firm his appointment as co-executor of his customer's estate, and also failed to disclose that he was serving as co-executor of his customer's estate when he associated with another firm. Winchester twice falsely represented on the firm's compliance questionnaires that he was not, among other things, acting as an executor of any individual's estate. The findings also included that Winchester entered into settlement agreements with customers without notifying the firm. Winchester did not disclose the promissory note that he signed to the beneficiary of his deceased customer's estate to the firm and also did not disclose a settlement agreement with one of his customers relating to $380,000 he had borrowed from the customer.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

4/6/2023

Claimant alleges that FAs misrepresented that her grandfather, a client of the same FAs, had setup a trust account for her with the FAs as trustees and that she believes account had been setup in her name and that FAs misrepresented that it was a trust to hide their alleged conversion of funds from the account.

$3,000,000.00

$62,500.00

Customer alleges that advisor concealed the amount of funds deposited into her account from her grandfather, and later borrowed funds from customer's account without customer's knowledge. Activity period 03/2009 to 11/2021.

$160,000.00

Tennessee Securities Division

Respondent engaged in dishonest and unethical practices by failing to disclose to his firm, three loans with three different clients either initially or through annual compliance questionnaires.

Consent

Civil and Administrative Penalty(ies)/Fine(s)

$45,000.00

In addition to the fine, Mr. Winchester is to Comply with the Tennessee Securities Act of 1980, complete five FINRA training courses, and be on heightened supervision for three years.

Raymond James Financial Services, Inc.

Discharged

Failure to disclose a business loan arrangement and two personal loan arrangements with separate clients, including a promissory note with a client related to Financial Advisor's role as executor of the client's father's estate.

Breach of Fiduciary Duty, Negligence, Negligent Supervision, Suitability, Excessive Turnover, Breach of Contract, Negligent Hiring, Selling Away and Violations of FINRA Conduct Rules

$150,000.00

$7,500.00

Matter was settled by the firm to avoid the uncertainty of litigation. Mr. Winchester denies all wrong doing as alleged and maintains that all investments were suitable and appropriate. While under Mr. Winchester's management, the customer's account achieved significant gains and any decline in account value was directly attributable to withdrawals made by the customer. This matter was resolved solely as a business decision on behalf of the firm, for a portion of estimated additional costs of defense, and Mr. Winchester did not contribute to the resolution.