FINRA Panel Awards Expungement of Charleston Advisor’s Sole Disclosure

In 2010, after 17 years of exemplary service in the financial industry, this Charleston, South Carolina advisor was hit with a customer dispute on his CRD and public BrokerCheck® records. The claim had been filed without the customer’s knowledge by her daughter had falsely alleged unauthorized trading and unsuitable investments. For 15 years, it tarnished the advisor’s reputation and hindered his career. Finally hoping to rid himself of the mark, the advisor retained AdvisorLaw to pursue expungement through FINRA Dispute Resolution.

The advisor had been a registered representative since 1993 and had built a stellar reputation serving clients with integrity. In March 2008, he began advising a couple who had been referred to him after they relocated. The couple had over 40 years of investment experience, a $400,000 annual income, and a $15 million net worth. Following the husband’s terminal diagnosis in October 2009, the advisor worked closely with the couple, ensuring proper account transfers, including a transfer-on-death form for the husband’s brokerage account before his passing in February 2010.

In May 2010, the advisor met with the wife to discuss her late husband’s IRA. The account was valued at $764,336.25. Based on her moderate risk tolerance, long-term investment horizon, and desire for guaranteed income with equity access, the advisor recommended the AXA Equitable Accumulator Combination Fixed and Variable Deferred Annuity. The customer reviewed the prospectus, signed disclosure forms affirming her understanding, and purchased the annuity, which comprised just 5% of her $11-million portfolio.

In August 2010, without her mother’s authorization, the customer’s daughter lodged a complaint alleging that the annuity purchase had been unauthorized and unsuitable and claiming that it lacked security and liquidity. The daughter had previously attempted to impersonate her mother to access account statements — a request that the advisor had denied. 

Equitable Advisors investigated and denied the claim on September 29, 2010, finding no evidence of wrongdoing on the part of the advisor. The customer herself never pursued the complaint, and no arbitration or litigation followed. Yet the disclosure remained on the advisor’s records, misleadingly suggesting misconduct and damaging his professional standing.

In October 2024, the advisor filed his Statement of Claim with FINRA Dispute Resolution, seeking expungement of the claim. He argued that the allegations were false and clearly erroneous, as the customer had authorized the purchase, and the annuity had aligned with her investment objectives. He believed that the daughter’s actions had stemmed from a desire to control her mother’s assets, following her father’s death. Equitable Advisors filed an answer but did not oppose the request and chose not to participate in the hearing. The customer’s daughter was served with all relevant documents, though she did not attend. The expungement hearing occurred via videoconference on March 19, 2025, with AdvisorLaw’s Dochtor Kennedy, MBA, J.D. and Harris Freedman, J.D. presenting Barrentine’s case through testimony, signed client documents, and other exhibits.

The three-arbitrator FINRA arbitration Panel reviewed the evidence, including the advisor’s testimony and client-signed disclosures, and it found the allegations to be factually impossible, clearly erroneous, and false, under FINRA Rule 2080. The Panel noted that the advisor’s testimony “indicated that [he had done] everything correctly in completing all required documentation, getting signatures on most of the documents, and interacting with the Customer.” The Panel noted that “[t]he Customer’s daughter attempted to access the parent’s account, and the [advisor] denied it, which was the correct cause of action.” Additionally, the Panel concurred that the customer’s daughter’s allegations had been incorrect. 

The Panel ordered the expungement of all references to the claim from the advisor’s CRD records, and his unblemished professional record is soon to be restored. With this victory, the advisor may continue his career free from the shadow of a baseless 2010 disclosure, reaffirming his commitment to client trust and integrity.

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.