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Award Date: October 17, 2025
Representatives: Alex Padla, Esq. and Austin Davis, Esq., HLBS Law
Respondent Firm: USAA Investment Services Company
Case Objective:
A financial advisor from Colorado Springs, Colorado sought to remove a defamatory and misleading termination entry from her Central Registration Depository (CRD) and BrokerCheck® records. The disclosure falsely stated she had been discharged in December 2023, due to an unspecified violation of company policy. With the expertise of HLBS Law, the advisor initiated FINRA arbitration in hopes of removing the mark from her records.
Summary:
The financial advisor joined USAA in September 2007. She was registered with the firm in various capacities, including as a registered representative and an investment advisor representative (IAR), until her termination on December 15, 2023. Throughout her tenure, she led an insurance team virtually, managing specialists across multiple states, and she maintained a positive working relationship with her colleagues.
On December 15, 2023, the advisor was notified via phone by a director that her employment was terminated, effective immediately. The director cited an alleged violation of USAA’s policies on conflict of interest, non-retaliation, diversity and inclusion, equal employment opportunity, and harassment prevention. However, no documentation was provided to support the termination.
On January 8, 2024, USAA filed a Form U5 stating that the advisor had been "discharged" due to an unspecified violation of company policy, which was not securities or investment-related. Despite knowing that the allegations were false, USAA appealed a decision by the Colorado Department of Labor and Employment Division of Unemployment, which had granted the advisor unemployment insurance benefits.
On March 27, 2024, and in a second hearing on April 25, 2024, the Colorado appeals branch found in her favor, determining that her termination was based on a mistaken belief, that she had followed proper policy and procedure, and that there was no validity to the allegations. Nevertheless, the termination disclosure remained on the advisor’s records.
Resolution:
The advisor filed her FINRA Statement of Claim on July 30, 2024, seeking expungement of the Form U5 entry from her CRD records. The evidentiary hearing was conducted partially by videoconference, and on August 21, 2025, the parties submitted a Notice of Settlement and Dismissal of All Claims Excluding Expungement with Prejudice.
On that same day, the advisor submitted an Unopposed Request for an Entry of Expungement Award, and on October 17, 2025, the three-arbitrator FINRA Panel granted expungement, ruling that the Reason for Termination be changed to “Voluntary” and the Termination Explanation be deleted in its entirety, based on the defamatory nature of the information.
This decisive win erased the false allegation, allowing Randall to continue her career with a restored record.
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