FINRA Expungement Award:

Financial rep. & broker-dealer seeks expungement of
8 customer dispute disclosures

 

Date: January 29th, 2021
Hearing Site:
New York, New York
Respondent Firm: Redacted
Claimant Representative: Harris Freedman, Esq. and Dochtor Kennedy, MBA, JD; AdvisorLaw, LLC


Type of Case:

Financial rep and owner of broker-dealer working in the New York area seeks expungement of eight separate customer dispute disclosures from his BrokerCheck profile and CRD.


Summary of Case:

Our financial advisor is a principal at the broker-dealer. Unbeknownst to he and the B/D, there was a rogue advisor working at the firm. This rogue advisor was committing a Ponzi scheme and concealing it by using an email address and communication methods that were not affiliated with the firm. This rogue advisor stole money from several customers of the broker-dealer without the firm or supervisors’ knowledge. All eight of the customer complaints involved the same fact pattern. The clients named the firm as a party in the complaints because the rogue advisor in question (and his accomplice) are currently under criminal prosecution and had no appreciable assets to recover from.


Results:

After considering the pleadings, pursuant to Rule 13805 of the Code of Arbitration Procedure, the Arbitrator found that all claims, allegations, or information contained were factually impossible or clearly erroneous. The registered financial advisor was not involved in the alleged investment-related sales practice violation, forgery, theft, misappropriation, or conversion of funds; and therefore, the allegations against our financial advisor were false.

All eight disclosures are to be expunged from the advisor’s BrokerCheck profile and CRD.




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