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Award Date: March 25, 2024
Claimant Representatives: Dochtor Kennedy, MBA, J.D. and Harris Freedman, J.D.
Respondent Firm: LPL Financial LLC
Case Objective:
Ten years into his career, in 2015, an advisor in Georgia was hit with a customer dispute disclosure. While the firm had denied the customer’s claim, an allegation that account transfer delays had caused customer losses of over $10K remained on the advisor’s public BrokerCheck and CRD records. He hired AdvisorLaw to seek expungement of the dispute through FINRA arbitration.
Summary:
In the summer of 2015, a customer of the advisor sought to transfer securities from another firm to LPL. When the transfer took longer than originally estimated, the customer alleged that the delay had resulted in losses of over $10K, and he lodged a claim seeking $20K in damages. The firm denied the customer’s claim, and the customer did not pursue it, but the disclosure lingered on the advisor’s records.
Result:
LPL participated in the advisor’s FINRA Dispute Resolution hearing, and the customer did not participate. The FINRA Arbitrator reviewed the pleadings and exhibits submitted and listened to arguments in favor of expungement, presented by Dochtor Kennedy, MBA, J.D. and Harris Freedman, J.D., as well as the advisor’s testimony.
After considering all of the information presented, the Arbitrator determined that “the facts of the case fit the factors of [FINRA] Rule[s] 2080(b)(1)(A) and (C)[,]” and he recommended expungement. In his award, the Arbitrator noted that “Neither the delay, nor any aspect of the transfer, was due to any action on the part of either [the advisor or the firm].” The Arbitrator mentioned that the customer’s claimed loss of $10,497.66 was, “At best[, ] ‘paper loss.’” He also mentioned that the customer’s $20,000 claim for damages was “to cover both his alleged loss and his mental stress.”
As the denied, meritless claim from that customer was the sole disclosure on this advisor’s records, he will soon have a perfect BrokerCheck profile and CRD record to boast as he approaches his 20th year in the financial services industry.
Learn more about our Disclosure Expungement services.