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FINRA Panel Removes Outdated Annuity Dispute from Virginia Advisor's Profile
On September 5, 2025, a Virginia investment advisor successfully achieved a FINRA expungement, clearing an outdated customer dispute from his BrokerCheck and CRD records. This case, handled by HLBS Law, highlights the process for removing inaccurate or factually erroneous information from an advisor’s public profile.
The advisor had maintained a clean record for over 25 years until a client dispute from 2002 appeared as a permanent mark. The dispute, which stemmed from a customer's variable annuity, alleged that the advisor failed to explain the product's exposure to the stock market.
The Case: A Baseless Customer Dispute
In the early 2000s, the advisor provided a client with a variable annuity that included a principal-return guarantee rider, which was set to activate after ten years. The advisor thoroughly explained the product's mechanics, risks (including its market ties and potential for a decrease in value), and fees. The customer signed multiple disclosure forms acknowledging their understanding.
During the market downturn in 2002, the annuity's value dropped. The customer then filed a dispute claiming she was unaware the annuity was tied to the stock market. The advisor's firm at the time, Prudential Equity Group, LLC (now part of Wells Fargo Clearing Services, LLC), investigated and denied the claim. The Virginia State Corporation Commission also found no wrongdoing. The customer did not pursue further action.
Expungement Awarded Under FINRA Rule 13805
After the old dispute continued to harm his professional profile, the advisor filed for expungement with FINRA Dispute Resolution in 2025. Represented by Harris Freedman, Esq., the advisor testified that the allegations were "factually impossible or clearly erroneous."
A three-arbitrator FINRA Panel agreed, granting the expungement. The panel's decision highlighted that the customer had signed documents verifying her understanding of the annuity's risks and market exposure. The panel concluded that the loss was due to market conditions, not the advisor’s actions, and ordered the removal of the Disclosure Reporting Page (DRP) from the advisor's records, restoring his public profile.
Through the Panel's unified decision, this advisor may step ahead with a pristine public ledger that echoes his ongoing dedication to integrity and client welfare.