Bay Area Advisor Restores Perfect, 30-Year BrokerCheck Records With Termination Expungement

Over the past 30 years, this California Bay Area advisor maintained perfect records in the industry — except for a sole disclosure from 2011. After 11 years with the firm, the advisor had been terminated for false allegations related to the handling of confidential information. In hopes of clearing his name and restoring his perfect public record, the advisor hired AdvisorLaw to bring him through FINRA arbitration.

The advisor joined the firm in 2000. Throughout his business with the firm, he had a limited professional relationship with a former associate. In his subsequent position in 2009, the former associate engaged in insider trading, and the founder of the former associate’s then-employer was arrested for insider trading. Though the criminal activity had been unbeknownst to the advisor, the former associate falsely implicated the advisor as having leaked confidential information. 

Despite the former associate’s history of dishonesty and criminal activity, the advisor faced reputational damage. The former associate received probation in exchange for cooperating with prosecutors, and he avoided prison time. In 2011, after media reports alleged that the advisor had been involved with the leaks, the firm placed him on administrative leave and conducted an investigation. Though no wrongdoing on the advisor’s part was discovered, the firm ultimately requested his resignation. The advisor refused, and the firm terminated him. He was never charged with any criminal or civil offenses, but he ended up with a scar on his previously flawless records.

At the FINRA Dispute Resolution hearing, the Arbitrator reviewed the documents submitted and listened to testimony. He also listened to the arguments presented on the advisor’s behalf by Harris Freedman, J.D., HLBS Law.

The Arbitrator’s final decision was to recommend expungement of the Reason for Termination and Termination Explanation from the advisor’s Form U5. He directed that the Reason for Termination be changed to “Voluntary” and that the Termination Explanation be deleted in its entirety and appear blank. Additionally, the Arbitrator recommended the expungement of all references to the occurrence from the CRD records, with any “Yes” answers to be changed to “No,” as applicable.

With the Arbitrator’s recommendation for expungement, this advisor will soon have achieved his objective of restoring his flawless records of over 30 years of commitment to the industry. 

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.