BrokerCheck Vindicated: Arizona Advisor Clears Misleading U5 Disclosure

Despite an otherwise-spotless record since 2012, this Arizona-based professional faced a single blemish on his BrokerCheck® and CRD records stemming from a Form U5 termination disclosure filed by his former employer. The disclosure characterized his 2019 discharge as resulting from continued performance issues, including lack of attention to detail and accountability, as well as timesheet inaccuracies, though none were client-related. Believing the language to be misleading and defamatory in nature, as it overstated a single mistaken timesheet entry and unsubstantiated feedback without prior warnings, the advisor engaged AdvisorLaw to seek FINRA arbitration and expunge the entry to reflect his professional integrity accurately.

The advisor joined UBS Financial Services Inc. as a senior registered client service associate in October 2016, based in Phoenix, Arizona. During his tenure, he maintained a strong performance history with no significant HR issues and even accrued unused vacation days multiple times. 

In January 2018, while on an approved vacation in Hawaii for a family wedding, he inadvertently submitted a timesheet marking January 24, 2018 as a working day instead of a vacation day. His manager approved the timesheet without noticing the error, and upon HR's inquiry, the professional immediately acknowledged the honest mistake, confirming he had not intentionally submitted false information. 

In August 2019, his managers informed him of negative feedback from certain brokers regarding attention to detail and accountability. He disputed most of the 21 points of constructive criticism provided during his mid-year review, questioning their accuracy, but received no formal warnings or reprimands related to performance or accuracy. 

On November 14, 2019, he was abruptly terminated, with the firm citing timesheet inaccuracies as the reason. The subsequent Form U5, filed on December 11, 2019, reported the termination as a "discharge" due to continued performance issues and timesheet inaccuracies, noting it was not client-related. The professional argued that the disclosure was misleading, as it implied dishonesty or insubordination warranting termination, when in reality, it stemmed from a single erroneous entry and unverified feedback without prior discipline. 

The language harmed his career, preventing him from securing new employment or registration in the industry and causing financial hardship. He emphasized that the matter was internal, not investment-related, and it had not involved customer complaints.

A sole FINRA Arbitrator conducted a videoconference expungement hearing on September 16, 2025. The Arbitrator reviewed the pleadings, testimony from the professional, evidence presented, and arguments for expungement by Dochtor Kennedy, MBA, J.D. and Peter Lindholm, Esq. UBS did not oppose the request. 

After full consideration, the Arbitrator granted expungement under Rule 13805, finding the information defamatory in nature. The decision amended the Reason for Termination in Section 3 of the Form U5 to "Voluntary" and deleted the Termination Explanation entirely, applying to all references in the CRD. The Arbitrator noted that the disclosure tended to mislead and caused more harm than benefit to the public or regulators. 

With this award, the advisor can move forward with a clean registration record that aligns with his commitment to ethical practices and professional excellence.

Facing a similar situation? Contact our team today for a complimentary consultation to evaluate your case. Our experts will assess the viability of expungement and guide you through the process.