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On August 20, 2025, a seasoned business development executive in Indianapolis, Indiana, won a significant legal victory with a FINRA U5 expungement award. The decision cleared a damaging termination disclosure from his Central Registration Depository (CRD) and BrokerCheck profiles, restoring his pristine record. This case, guided by HLBS Law, demonstrates that a misleading Form U5 can be successfully challenged.
The Case Against Equitable Advisors, LLC
This executive's professional career was unjustly harmed by a Form U5 filed by Equitable Advisors, LLC, on November 23, 2022. The firm stated he was "discharged due to his failure to report a criminal matter," answering "Yes" to Question 7F(1). This language implied investment-related misconduct, despite the fact that the executive's role involved no securities transactions.
The criminal charge was a baseless felony battery claim filed by his ex-wife during a contentious divorce. While the charge was promptly reported once the requirement was known, it was ultimately dismissed on March 17, 2023, and judicially expunged. Nevertheless, Equitable Advisors refused to amend the damaging filings.
FINRA Arbitration and Expungement Ruling
The executive, represented by attorney Michael Bessette, J.D., from HLBS Law, filed a Statement of Claim with FINRA in July 2024. The claim sought to expunge the inaccurate disclosure and alleged defamation.
Can a criminal charge on a U5 be expunged?
This case proves it can. After a hearing from August 5-8, 2025, a three-arbitrator FINRA Panel granted expungement. The Panel found the original disclosure to be misleading and harmful, ordering:
- The termination explanation be replaced with more accurate language: "RR discharged due to his failure to timely report a previously reportable matter."
- All references to the original disclosure be removed from the registration records.
- The "Yes" answer on Question 7F(1) be changed to "No."
This successful expungement victory not only cleared the executive's name but also restored his career trajectory, demonstrating the power of a defense against unjust and misleading disclosures.