FINRA Panel Grants 11 Expungements For Arkansas Financial Advisor

• Case Outcome: A three-arbitrator FINRA Panel unanimously granted the expungement of 11 meritless customer disputes from the advisor’s CRD and BrokerCheck records.
• Core Allegations: The disputes, filed between 2020 and 2023, falsely alleged unsuitability regarding alternative investments (REITs and BDCs) and excessive advisory fees.
• Key Findings: The Panel ruled the claims were "demonstrably at odds with the documentary evidence" and "clearly erroneous," stemming from a contentious partnership split rather than advisor misconduct.
• Legal Representation: The advisor was successfully represented by Peter Lindholm, J.D., and Dochtor Kennedy, J.D.
• Regulatory Compliance: Relief was granted under FINRA Rule 2080, with the Panel concluding that the information was false and its removal would not compromise investor protection.

A veteran financial advisor in Arkansas, with over three decades of exemplary service, confronted a cluster of meritless customer disputes triggered by a contentious partnership split and client solicitation. These 2020-2023 complaints alleging unsuitability of alternative investments and excessive advisory fees culminated in the advisor’s abrupt termination. Backed by AdvisorLaw, the advisor sought expungement in FINRA arbitration to purge these unfounded marks from his records.

The advisor began his financial-services career in November 1993, building a practice centered on comprehensive financial planning. From 1993 to October 2023, he served as a registered representative with Equitable Advisors in Arkansas, collaborating with a partner on roughly 100 shared clients. In May 2023, the partner and a junior associate departed to form their own firm. They then aggressively courted clients with promises of reduced fees and entirely unsubstantiated insinuations of overcharging on the part of our advisor.

This exodus prompted a wave of complaints from the advisor’s former clients, many of whom were retired executives with sophisticated profiles, substantial net worths (often exceeding $3M liquid), and long investment horizons. Disputes centered on pre-2019 recommendations of diversified alternatives, like REITs and BDCs, which aligned with clients’ growth-oriented, moderately aggressive risk tolerances. The clients had affirmed the investments’ suitability in signed profiles, prospectus, and subscription agreements following detailed discussions with the advisor regarding the terms, risks, and benefits. Fee-related gripes emerged post-departure, despite the fact that the advisor’s rates had adhered strictly to those clients’ advisory contracts.

In July 2023, the former partner accused the advisor of unauthorized activities, sparking a firm investigation. Amid escalating tensions, clients lodged formal claims. The firm settled several nominally as cost efficiencies, without the advisor’s involvement. In October 2023, the firm terminated the advisor for allegedly settling complaints privately—a charge he denied, emphasizing his evident transparency in all dealings.

These disclosures tainted the advisor’s otherwise-pristine CRD and BrokerCheck records, while offering no genuine investor protection.

The advisor filed for expungement in September 2024. Equitable Advisors took no position on the filing. Customers were repeatedly served notices of the expungement effort. Some supported expungement, and others opposed or abstained, while the Arkansas Securities Department voiced resistance. A three-day videoconference hearing convened in November 2025 in Little Rock, with testimony from the advisor, select customers, and the state regulator.