FINRA Panel Awards Expungement Of San Antonio Advisor’s Customer Dispute

A dedicated financial advisor (FA) in San Antonio, Texas fought to remove a baseless customer complaint from his Central Registration Depository (CRD) and BrokerCheck® records. The complaint, lodged 11 years after a variable annuity purchase, falsely accused him of misrepresenting the product's details and fees. The mark derailed the FA’s professional reputation, despite no prior issues. With the expertise of HLBS Law, he initiated FINRA arbitration to vindicate himself, erase the damaging disclosure, and reclaim his unblemished career path.

In January 2010, while registered with Morgan Keegan & Company, LLC, the FA inherited an orphaned "house" account from a client whose sole holding was a 13-year-old Nationwide annuity valued at just over $102,000—barely above its original $100,000 purchase price from 1997.

Upon being assigned the account, the FA proactively engaged the customer in a detailed discovery process, assessing his portfolio allocation, investment objectives, household finances, experience, time horizon, liquidity needs, risk tolerance, and more. The customer expressed dissatisfaction with the Nationwide annuity's poor performance and lack of a protected income rider, especially amid the lingering effects of the 2008 financial crisis. He sought market participation while safeguarding withdrawal value and requested that the FA research variable annuity exchange options. 

The FA consulted Morgan Keegan's internal annuity team, which curated a firm-wide list of recommended products. Over several months, he presented offerings from various insurers and conducted in-depth discussions with the customer, emphasizing the terms, conditions, and disclosures.

Ultimately, the customer selected a Prudential variable annuity. He signed Morgan Keegan's Variable Annuity Information Form, which detailed charges and illustrated the surrender schedule and new contract fees in a table. The customer also confirmed receipt of the product prospectus. The exchange aligned with his goals. 

However, 11 years later—nine years after ending his relationship with the FA—the customer alleged misrepresentation and demanded $32,000 in damages.

The FA filed his FINRA Statement of Claim in October 2024, seeking expungement of the claim from his CRD records. Raymond James & Associates, Inc., successor to Morgan Keegan, did not oppose the request. A recorded expungement hearing occurred via videoconference on August 4, 2025.

On October 10, 2025, the three-arbitrator FINRA Panel granted expungement, ruling that "The Panel awards the expungement of all references to Occurrence Number 2121758 from registration records maintained by the CRD for Claimant[.]" The Panel affirmed that "The claim, allegation, or information is false," based on the FA’s sworn testimony and exhibits, noting that "Eleven (11) years after issuance and nine (9) years after ceasing to be a client of [the FA], the Customer alleged misrepresentation of his Prudential variable annuity policy [] and failure to explain the Policy’s details and fees, and demanded $32,000.00 in compensatory damages." They found that "all necessary disclosures were made to the Customer" and that "for eleven (11) years, the Customer gave no indication that he was unhappy with the Policy that he had purchased."

This decisive win erased the false allegation, allowing the FA to continue his career with a restored, impeccable record.

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.