A former Edward Jones advisor faces 20 years in jail for allegedly defrauding an aged shopper of greater than $920,000, in accordance with the Justice Division.
John Winslow, a 56-year-old former advisor primarily based in Fox Island, Wash., was charged with a number of counts of wire fraud, mail fraud, cash laundering and making and subscribing a false tax return.
“Mr. Winslow took benefit of the sufferer’s belief to steal from her financial institution and brokerage accounts,” Performing U.S. Legal professional Teal Miller stated. “He used the sufferer’s funds to improve his life-style—shopping for an island dwelling, putting in a sizzling tub and new home equipment, and buying a brand new automobile and a diamond necklace.”
In response to SEC information, Winslow joined the business in 1999 with Morgan Stanley. He labored multi-year stints at Key Funding Providers and UnionBanc earlier than becoming a member of Edward Jones in 2013, the place he remained till he was fired in 2021.
Winslow allegedly managed the brokerage accounts of an aged widow with no rapid members of the family (she is unnamed within the indictment, although she was 77 years outdated as of December 2021).
Winslow’s alleged scheme began in 2017 when he started transferring funds from the shopper’s financial institution and brokerage accounts with two corporations into his personal; these funds included the shopper’s life financial savings and an inheritance from her sister.
In response to the DOJ, Winslow instructed the shopper that if she transferred cash to him, he would repay her at a better rate of interest than what she had acquired from her accounts (with no intent to take action). Winslow would have the shopper name the financial institution and put them on speaker, telling her what she ought to say to the financial institution.
Beginning in August 2018, Winslow started transferring funds straight from the shopper’s Edward Jones brokerage account to her checking account. When the agency flagged these transfers, Winslow allegedly lied, saying that the shopper wanted the funds to cowl bills involving her sister’s property and to purchase a rental dwelling. After the switch, Winslow would make a second wire switch into his personal financial institution accounts, once more telling the sufferer what she ought to say to her financial institution.
In September 2020, Winslow drew checks straight from the sufferer’s brokerage accounts (together with funds from her sister’s inheritance) to purchase gold cash from an internet gold retailer in Texas.
Winslow had the gold cash shipped to the shopper’s dwelling deal with, and utilizing a replica of her mailbox key that he stated he wanted to assist handle her affairs, Winslow allegedly took the cargo (he later had shipments delivered to his P.O. Field, in accordance with the DOJ). The advisor then offered many of the cash to a gold retailer in Washington.
In response to the indictment, he used the funds for quite a few purchases, together with the down cost and mortgage funds for his dwelling in Fox Island and different enhancements (together with a sizzling tub, landscaping the yard and getting new home equipment). He additionally paid a member of the family’s tuition and purchased a automobile, amongst different bills.
When the shopper found the fraud, she demanded Winslow return her cash, however he refused, the DOJ claimed.
In response to SEC information, Edward Jones fired Winslow in December 2021, saying he failed to speak he acquired funds from a shopper and purchased gold cash with shopper funds that weren’t disclosed to the agency. In response to Edward Jones, the shopper didn’t bear in mind buying gold cash or having any delivered.
“Upon studying of this misconduct by this former monetary advisor, Edward Jones terminated his employment,” a spokesperson for the agency stated. “We take compliance with regulatory and business guidelines significantly. Our prime precedence stays serving our purchasers and serving to them obtain financially what’s most essential to them.”
SEC and FINRA information confirmed that the latter company barred Winslow in April 2022 for refusing to provide data and paperwork associated to an investigation into his firing. Final month, Winslow settled with the SEC, agreeing to a everlasting business bar.
Winslow’s legal professional didn’t return a request for remark previous to publication. In response to the DOJ, Winslow pleaded “not responsible,” and his trial is estimated to begin June 2.
