← Broker database 2022-09-19
Jared Winston Barred for Converting Firm Funds Through Fraudulent Expense Reimbursements
According to FINRA, Jared Winston was barred from the securities industry for converting approximately $2,000 from his member firm by obtaining reimbursement for childcare expenses he did not incur.
The findings revealed that as part of the firm's childcare reimbursement program, Winston applied for childcare reimbursement on days during which he did not pay for childcare and therefore was not entitled to reimbursement from the firm. For those days, the firm paid Winston approximately $2,000 in reimbursement, which he retained in his bank account for personal use.
Conversion—the unauthorized taking of another's property for one's own use—is one of the most serious violations in the securities industry. It involves dishonesty and a breach of trust that goes to the heart of an individual's fitness to work in a position requiring integrity and trustworthiness. While the amount in this case ($2,000) may seem relatively small, the nature of the conduct is what makes it so serious.
The childcare reimbursement program was presumably designed to help employees balance work and family responsibilities, and Winston exploited this benefit by submitting false claims for reimbursement. This type of fraud requires deliberate dishonesty—Winston had to affirmatively represent that he had incurred childcare expenses on specific days when he knew this was not true. The repetitive nature of the conduct (occurring on multiple days) demonstrates that this was not a one-time mistake but a pattern of dishonest behavior.
FINRA consistently takes the position that conversion warrants a bar from the industry, regardless of the amount involved. This strict approach reflects the principle that the securities industry must maintain high standards of integrity and honesty. Investors entrust securities professionals with their financial assets and personal information, and this trust requires that professionals demonstrate honesty in all aspects of their conduct, including their dealings with their employers.
The bar imposed on Winston appropriately removes from the industry an individual who has demonstrated a willingness to engage in fraud for personal gain. Investors should take comfort in knowing that FINRA does not tolerate dishonest conduct by registered persons, even when the misconduct involves relatively small amounts or occurs outside the direct customer relationship. The integrity of the securities industry depends on maintaining these high ethical standards.