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Quick Summary

AdvisorLaw successfully represented a Hawaii-based financial advisor in a AAA arbitration to permanently expunge baseless claims of financial elder abuse and unsuitability stemming from a 2007 tenant-in-common (TIC) investment. The arbitrator ruled the allegations were false, defamatory, and factually impossible, granting a full expungement under FINRA Rule 12805 to restore the advisor's spotless 22-year BrokerCheck and CRD records.

Case Objective: Clearing a False Customer Dispute

A veteran financial advisor in Hawaii with a 22-year, unblemished record faced a single, baseless customer complaint arising from a beneficiary’s belated dissatisfaction with a 2007 tenant-in-common (TIC) investment.

The 2023 dispute falsely alleged:

Financial elder abuse
Unsuitability
Breach of fiduciary duty
Negligence

Supported by AdvisorLaw, the advisor pursued arbitration with the American Arbitration Association (AAA) to permanently remove the unfounded disclosure from his CRD, BrokerCheck, IARD, and IAPD records.

Case Summary: The 1031 Exchange and TIC Investment

The advisor launched his career in November 2004. In July 2007, through a referral, he welcomed a 76-year-old, retired client with extensive real estate investment experience. The client had an annual income between $100,000 and $120,000, a liquid net worth of approximately $1.9 million, and a total net worth of roughly $4.5 million.

The client’s primary goal was to complete a Section 1031 exchange of rental property into tenant-in-common (TIC) interests. This strategy was designed to diversify his holdings and eliminate day-to-day property management responsibilities.

As one of only two advisors at Grove Point Investments, LLC qualified to handle TIC and DST transactions, the advisor thoroughly reviewed the client’s investor profile. The profile indicated:

Growth and income objectives
Speculative risk tolerance
Low liquidity needs
A 7-to-12-year time horizon

Based on these factors, the advisor recommended a diversified suite of TIC properties, including Centerpointe TIC #12 Woodbridge, IL, LLC (offered by Cole Capital Partners, LLC). The advisor meticulously detailed all terms, risks, costs, fees, advantages, and disadvantages. The client personally selected the investments, executed the necessary subscription documents, reviewed the offering materials, and affirmed in writing that he understood them. His investment in the TIC represented just 12.56% of his total net worth.

From 2007 until his passing in February 2011, the client and the advisor maintained regular contact regarding portfolio performance. At no time did the client—or his successor trustee—express any concern or contemplate a claim.

The 2023 Dispute

The advisor later transferred registrations through several firms before joining Buck Wealth Strategies, LLC in August 2022. In or around July 2023, a beneficiary joined a class-action suit against Cole Capital and filed a FINRA arbitration against Grove Point, seeking over $882,000.

Grove Point reported the dispute to the advisor’s record and, as a business decision, settled the matter in late 2024 for $185,000—a fraction of the demand. The advisor made no financial contribution to this settlement.

Resolution: AAA Arbitration and Expungement Granted

The advisor commenced this AAA expungement proceeding on August 28, 2025. Oral hearings were waived, and the matter was decided strictly on the written record. After careful review of all submitted evidence, the AAA Arbitrator granted the expungement request in full.

As set forth in the final award:

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“The Beneficiary’s claim is false, based on equitable grounds. There is absolutely no evidence of ‘financial elder abuse.’ … Anyone seeing an allegation of financial elder abuse appearing on [the advisor’s] Registration Records would reasonably infer that it was truthful, and that [the advisor] had engaged in fraudulent or unethical acts, but the evidence demonstrated that the allegation is unfounded and baseless.”

Furthermore, the Arbitrator found the claims of unsuitability, breach of fiduciary duty, and negligence to be “false and clearly erroneous.” The Arbitrator noted that the investments were entirely suitable at the time under FINRA Rule 2111 standards, no fiduciary duty applied under the prevailing suitability framework, and no negligent conduct was shown.

The Arbitrator ultimately concluded that “the information reflected in [the disclosure] is defamatory in nature … as well as misleading,” and that the advisor successfully fulfilled the criteria for expungement set out in FINRA Rule 12805.

The Award directed the complete expungement of the occurrence and all related disclosures from the advisor’s CRD, IAPD, and BrokerCheck records, officially restoring the integrity of his spotless 22-year regulatory history.

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Facing a similar situation? Contact our team today for a complimentary consultation to evaluate your case. Our experts will assess the viability of expungement and guide you through the process.

Expungement Award