Illinois Advisor Secures Expungement of Customer Dispute in FINRA Arbitration

A registered representative based in Park Ridge, Illinois pursued FINRA arbitration to eliminate a baseless customer complaint from her Central Registration Depository (CRD) and BrokerCheck® records. The disclosure, reported in January 2025, accused her of misrepresentations concerning a variable universal life (VUL) policy purchased in 2021 and sought $5,000 in damages. Supported by HLBS Law, the advisor aimed to clear her professional record of the inaccurate entry.

The advisor began her career in financial services in July 2003. She became associated with Equitable Advisors in February 2019 and remained with Equitable until April 2022. In early 2021, she developed a friendship with a self-employed stylist and salon owner, after meeting at a social gathering and becoming a client at the stylist’s salon.

In June 2021, the stylist engaged the advisor professionally for financial planning assistance. She lacked business insurance, estate documents, or a long-term strategy. With a conservative growth risk tolerance, $100,000 annual income, a 20-plus-year investment horizon, and substantial cash reserves, the stylist aimed primarily to secure life insurance for her children amid her ex-husband’s terminal illness.

The advisor recommended a Section 1035 exchange of the client’s existing $150,000 whole life policy (issued by Western & Southern Life Insurance Company with a $250.45 monthly premium), for an Equitable VUL policy offering a higher death benefit at the same premium and with no surrender charges. Woroniecki thoroughly explained the product’s terms, risks, costs, and benefits, provided the prospectus, and obtained the client’s signed acknowledgments confirming her understanding.

After the exchange, a Western agent who was unlicensed in securities and a salon client of the stylist made aggressive, misleading statements about the VUL during a June 29, 2021, conference call that the advisor joined at the stylist’s request. The advisor highlighted the agent’s lack of authority to advise on variable products. The stylist reaffirmed her desire to retain the VUL within its 30-day free-look period and proceed with the plan. A temporary double-billing issue during the exchange was resolved with a reimbursement from Western.

The advisor departed Equitable in April 2022 and had no further investment discussions with the stylist, though their personal salon relationship continued until March 2024. On January 27, 2025, a customer dispute by the stylist appeared on the advisor’s records. Equitable denied the claim on February 28, 2025, and the stylist did not pursue it further.

The advisor filed her Statement of Claim on March 5, 2025, requesting expungement under FINRA Rule 2080. The client was properly served and submitted a March 7, 2025, statement supporting the request. A videoconference expungement hearing occurred on October 20, 2025, with the advisor testifying and Equitable not contesting the relief.

On October 23, 2025, the three-arbitrator FINRA Panel issued its award, directing expungement of all references to the claim from the advisor’s CRD records (subject to court confirmation under Rule 2080). The Panel found the allegations factually impossible or clearly erroneous and false, citing ample written and verbal disclosures to the client, Equitable’s claim denial after investigation, the client’s non-pursuit of the matter, and her explicit endorsement of expungement.

This ruling fully removed the unfounded complaint, preserving the advisor’s unblemished reputation as she continues her practice.

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.