FINRA U5 Expungement Award:
A 1991 Form U5 Termination Disclosure Removed From Record
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Award Date: November 18, 2021
Hearing Site: Albuquerque, New Mexico
Respondent Firm: The Prudential Insurance Company of America
Claimant Representative: Dochtor Kennedy, MBA, J.D., and Samantha Pastor, J.D.
A 1991 Form U5 termination disclosure had been plaguing the records of an advisor with over 30 years of dedication to the financial services industry. He sought the help of AdvisorLaw to seek the expungement of the mark from his records through FINRA Arbitration.
The advisor had joined the firm in 1988. He had grown to eventually become one of its top producers in the state of New Mexico and had won multiple sales awards.
The advisor developed his own strategy, whereby public employees with pensions could utilize life insurance to fund a spouse’s pension, when suitable. The advisor’s superiors at the firm expressed that they were impressed with the advisor for devising such a beneficial strategy, and the firm sent the advisor to its branches in surrounding states to teach the strategy.
Around 1991, the firm hired a new district manager who clashed with the advisor. The advisor began seeking other employment, drafted a letter of resignation, and ultimately resigned in July of 1991. He was not informed of any allegations against him, nor that he had allegedly been terminated by the firm.
In February of 1992, the advisor was surprised to receive a letter from the NASD informing him of an investigation into allegations that he had misrepresented his use of the strategy he had devised — allegations that had been made by his former district manager. The firm filed a Form U5 reporting an alleged termination.
Do you have a meritless disclosure on your BrokerCheck, CRD, or IAPD/IARD record? Give us a call today at (303) 952-4025, or contact us for a complimentary consultation.
With the help of Dochtor Kennedy J.D., MBA and Samantha Pastor, J.D., the advisor recounted the events from nearly 30 years prior for the Arbitrator. After listening to the testimony and arguments and reviewing the documents submitted on behalf of the advisor, the FINRA Arbitrator determined that the information contained in the termination disclosure was defamatory in nature, and she recommended expungement.
More than three decades after ceasing his affiliation with the firm, the advisor can finally proceed without the hindrance of a defamatory-in-nature termination disclosure on his public records.
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