FINRA Panel Clears Baseless Advisory Fee Dispute For Florida Financial Advisor

• Outcome: Full expungement granted; all references to the fee dispute removed from CRD and BrokerCheck.
• Key Finding: The Panel ruled the claim “false,” noting that the 1% asset-based fee was contractually bound and justified by the advisor’s attentiveness.
• Defense: Led by Chelsea Bauer, Esq. of HLBS Law.
• Core Issue: A meritless complaint from a deceased client’s son challenging advisory fees during a period of low trading activity due to the client’s ill health.

A financial advisor in Florida with a pristine, 17-year career faced an isolated, meritless customer complaint from the son of a deceased client. The 2015 dispute challenged the advisory fees that had been charged on a managed account during a period while the client was ill and engaging in limited trading activity. Supported by counsel, the advisor sought expungement in FINRA arbitration to remove the unwarranted disclosure from his CRD and BrokerCheck records.

The advisor launched his financial services career in June 2008 and joined Robert W. Baird & Co. in June 2012, where he served clients in Sarasota, Florida, until moving on in June 2020. In April 2013, a female investor hired the advisor. Drawing on her personal and financial information, the advisor constructed a diversified portfolio in an Advisory Choice managed account. He charged the industry-standard, 1% annual fee on eligible assets.

The advisor provided the customer with comprehensive wealth management services that went well beyond trade execution. He maintained regular contact with her, monitored her portfolio daily, delivered tax preparation documents, coordinated quarterly tax payments, and assisted with estate planning reviews aimed at minimizing taxes—all included in the advisory fee. The customer was often anxious about her finances, and the advisor provided her with frequent reassurance. Trading in her portfolio was infrequent and primarily conducted for tax-loss harvesting, which was consistent with her conservative objectives and desire to hold quality stocks.

In early 2014, the customer’s health declined sharply. She was hospitalized multiple times and relocated to Illinois to live with her daughter. The advisor continued monthly (and often more frequent) communications with both mother and daughter to coordinate their financial decisions.

The customer passed away in July 2015. Following her death, her son, who was Trustee of one family trust, became confrontational and filed a complaint in December 2015, alleging that transactions in the account did not justify the advisory fees charged. He sought a refund of approximately $37,408. After a thorough internal investigation, Baird denied the claim in February 2016. Notably, the customer’s daughter and other family members have maintained their accounts with the advisor to the present day.

The advisor initiated expungement proceedings in late 2024. Baird took no position opposing the request. The customer’s family was properly served but did not appear or participate in the hearing. A three-arbitrator Panel conducted a recorded videoconference hearing on January 20, 2026, in Tampa, Florida.

After reviewing the pleadings, the advisor’s testimony, and key exhibits, the Panel unanimously granted expungement. As stated in the award: “The claim, allegation, or information is false.” The Panel explained: “Although it is true that there were no transactions during the 2014–2015 time period (other than dividend reinvestments), and that [Baird] continued to charge an advisory fee, nonetheless, a 1% asset based fee is industry standard and was contractually bound. There is some evidence in the case that [the advisor] was attentive to the needs of the Customer during the relevant time period. The fees charged were therefore justified.”

The ruling directs the removal of all references to the claim from the advisor’s registration records, subject to court confirmation under FINRA Rule 2080. The Panel’s ruling will clear a baseless mark from an otherwise-exemplary professional record.