FINRA’s Department of Enforcement investigated Winegar and alleged he converted $100,000 from an elderly customer and used the funds to repay his family and personal debts, and to trade securities on his own behalf. Specifically, Winegar enticed the 85-year-old Wedbush customer to provide him with $100,000 in order to open an independent investment advisory firm. Winegar was supposed to open the firm and then satisfy the $100,000 debt by providing the elderly customer with free investment advice over the next four years. According to FINRA, Winegar never opened the firm, and used the elderly client’s funds for his own personal use.
Based upon the foregoing misconduct, FINRA alleged Winegar violated two FINRA Rules, namely FINRA Rule 2150(a) and 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages or are the victim of investment fraud from dealing with Winegar, you may be able to recover your losses through FINRA arbitration. We offer a free, no-commitment initial consultation. Please contact one of our attorneys at (800) 627-2179 to schedule a consultation.