Florida Advisor Clears Records With Expungement Of Five Disputes

Award Date: October 18, 2024
Claimant Representative: Harris Freedman, J.D.
Respondent Firm: G.F. Investment Services, LLC

Case Objective:

An advisor in Florida who has been in the industry since 2004 had accumulated five customer disputes on his records between 2020 and 2023. Hoping to win the expungement of the disputes, he hired AdvisorLaw to bring him through FINRA Dispute Resolution.

Summary:

The first customer had filed for FINRA arbitration with several allegations against the advisor. The customer sought $100,000, and the firm settled with the customer for less than $10K.

The second customer alleged that REIT investments that they had made in 2015 had been unsuitable, and they sought $50K in damages. Their claim evolved into FINRA arbitration, and the firm settled with them for just under $15K.

The customers who lodged the third claim filed for FINRA arbitration, alleging that recommendations of alternative investments had been unsuitable. The firm settled with the customers for just over $100,000.

The fourth dispute was the result of a couple filing for FINRA arbitration, again alleging that alternative investment recommendations had been unsuitable. They sought $100,000 and settled with the firm for $25,000.

A sole investor lodged the fourth claim by filing for FINRA arbitration and alleging unsuitable recommendations of alternative investments. He sought $91,000 in damages, and the firm settled for $12,500.

Resolution:

Before the hearing, the advisor filed his Statement of Claim and notified the customers. The firm did not file a statement of answer. None of the customers participated in the advisor’s expungement hearing. The FINRA Arbitrator reviewed the documents submitted and listened to the advisor’s testimony. Harris Freedman, J.D., presented his arguments on behalf of the advisor, as well.

The Arbitrator determined that, in the first and second claims, the advisor had “recommended that the investment[s] be diversified” and that “The Customer[s were] informed that the [investments] were not liquid and understood the risk involved.”

In the third claim, the Arbitrator also noted that “The Customer had a high net worth” and that “The investments were diversified…and were suitable.” He also noted that “The claims were made after the COVID pandemic.”

Regarding the fourth claim, the Arbitrator noted that two of the investments in question “were annuities in which [the advisor] was not involved” and that “the other three [] investments were not liquid and [the customer] understood the risk involved.” The Arbitrator added that “no complaints were made until 2023 as a result of the COVID pandemic.”

The Arbitrator made similar statements about the fifth and final dispute, and he recommended the expungement of all five customer disputes from the advisor’s records. With no other marks of any kind, this advisor will soon have a perfect public profile.

If you have a meritless or false disclosure on your public record, AdvisorLaw can help. Contact us today for a complimentary consultation.