FINRA Grants Expungement Of 2018 Discharge For New Jersey Advisor

• Case Outcome: A sole FINRA arbitrator ordered the complete expungement of a 2018 "discharge" disclosure for a New Jersey advisor with over 30 years of industry experience.
• Legal Finding: The Arbitrator recommended full relief, directing the Reason for Termination to be changed from "Discharged" to "Voluntary" and the Termination Explanation to be deleted entirely.
• The Allegations: World Investments, Inc. had alleged violations of cybersecurity policies (unauthorized international travel with a laptop), Special Supervision Agreements (trading without cleared funds), and FINRA Rule 2210 (unapproved promotional emails).
• The Defense: Documentation proved the advisor had a history of traveling abroad without firm objection, ensured funds cleared before trade settlement, and provided prospectus hyperlinks in all communications.
• Key Victory: The Arbitrator ordered all "Yes" answers on the Form U5 related to this occurrence to be changed to "No," finding no evidence of client harm, complaints, or regulatory breaches.
• Impact: This award removes a seven-and-a-half-year-old blemish, restoring the professional integrity of a three-decade career.

A veteran registered representative in New Jersey, who has been in the industry for over 30 years, sought expungement of a 2018 Form U5 termination disclosure that falsely stated he was “discharged” for multiple policy violations. With HLBS Law's assistance, the advisor pursued FINRA arbitration to remove the inaccurate and highly-damaging termination language from his CRD and BrokerCheck records.

The advisor began his securities career in August 1993. He joined World Investments, Inc. in January 2016 as an independent contractor.

In February/March 2018, the firm terminated the advisor and filed a Form U5 stating that he had been “discharged” for:

• violating cybersecurity policies by failing to notify the firm of international travel while possessing a work laptop containing sensitive client data and accessing firm systems to place trades from abroad;
• violating his “Special Supervision Agreement” by placing trades in accounts without cleared funds, threatening resignation when the trades were rejected, and attempting to repeat the conduct the next day; and
• violating FINRA Rule 2210 and firm WSPs by sending promotional emails about structured notes and REITs to more than 25 recipients without prior principal approval and allegedly failing to furnish prospectus.

The advisor vigorously disputed every allegation. He had previously placed trades while traveling abroad to China and Japan without any prior objection or warning from the firm. He timed every trade to ensure that the funds cleared before settlement, provided hyperlinks to current prospectus in the promotional emails, and was never told the materials required pre-approval. No client was harmed, no client complained, and no regulatory action was ever taken.

Following the termination, the “discharged” disclosure severely damaged the advisor’s reputation and ability to earn a living in the industry despite his otherwise-clean record.

The advisor filed his expungement arbitration claim in April 2025. World Investments, Inc. initially filed an answer, but in August 2025, the parties submitted a Joint Agreement and Stipulation, in which the firm expressly did not oppose expungement and agreed that the arbitrator retained the authority to recommend expungement on an equitable basis.

After a recorded videoconference expungement hearing in October 2025, a sole public arbitrator issued the award recommending full expungement of the disclosure. The Arbitrator directed that the “Reason for Termination” on the Form U5 be changed to “Voluntary,” that the entire “Termination Explanation” be deleted and left blank, that all “Yes” answers related to the occurrence be changed to “No,” and that all references to the termination disclosure be expunged from the advisor’s CRD record.

The Arbitrator’s directive clears the 2018 discharge language from the advisor’s permanent registration records, removing a seven-and-a-half-year-old blemish that never involved client harm or complaints and allowing him to move forward, unencumbered by misleading and damaging disclosure.

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.