• August 28, 2020
• Cadaret Grant & Co.
• Raymond James

William Winchester (CRD # 4404327 is a Financial Advisor at Cadaret, Grant & Co., Inc., in Chattanooga, TN. William Winchester has been in the securities industry since 2001 and previously worked at Raymond James Financial Services Advisors, Inc, LPL Financial LLC, and Suntrust Investment Services, Inc.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2020, William Winchester was fined $45,000 by the Tennessee Securities Division following allegations that Mr. Winchester “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.”

In February 2020, William Winchester was discharged from Raymond James Financial Services, Inc. According to publicly available records released by FINRA Mr. Winchester “failed 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.”

In addition to the above, according to publicly available records released by FINRA, William Winchester had a customer complaint disclosure in April 2018 stating
“Breach of Fiduciary Duty, Negligence, Negligent Supervision, Suitability, Excessive Turnover, Breach of Contract, Negligent Hiring, Selling Away and Violations of FINRA Conduct Rules.” The matter settled for $7,500.

For a copy of William Winchester’s CRD, click https://brokercheck.finra.org/individual/summary/4404327

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Age
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.

Financial Advisor William Winchester III Barred by FINRA

William Winchester III (CRD#: 4404327) is a previously registered Broker and previously registered Investment Adviser.

Broker’s Background

He entered the securities industry in 2001 and previously worked for Cadaret, Grant & Co., Inc.; Raymond James Financial Services, Inc.; LPL Financial, LLC; Suntrust Investment Services, Inc.; First Tennessee Brokerage, Inc.; and Amsouth Investment Services, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2023, FINRA sanctioned William Winchester III, permanently barring him from all capacities, indefinitely, beginning April 6, 2023. The FINRA sanction states, “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.”

For a copy of the FINRA sanction, click here.

In addition, William Winchester III has been the subject of five other disclosures, including the following:

• November 2021 — “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.” The customer dispute was settled for $62,500.
• November 2021 — “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.” The customer dispute was settled for $160,000.
• June 2020 — “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.” The Tennessee Securities Division sanctioned William Winchester III with a civil and administrative penalty/fine of $45,000, as well as ordered his compliance with the Tennessee Securities Act of 1980, complete five FINRA training courses, and be on heightened supervision for three years.
• February 2020 — “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.” William Winchester III was discharged by Raymond James Financial Services, Inc.
• April 2018 — “Breach of Fiduciary Duty, Negligence, Negligent Supervision, Suitability, Excessive Turnover, Breach of Contract, Negligent Hiring, Selling Away and Violations of FINRA Conduct Rules.” The customer dispute was settled for $7,500.

For a copy of William Winchester III’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.