Michigan Advisor Clears Records Of False Forgery Allegation

In September 2023, a dedicated financial advisor (FA) in Traverse City, Michigan faced a baseless customer complaint on his Central Registration Depository (CRD) and public BrokerCheck® records. The complaint falsely alleged that the FA had forged the client’s signature on a fixed-index annuity application in February 2022. This erroneous disclosure damaged the FA’s professional reputation and posed risks to his career. Committed to restoring his unblemished record, the FA engaged HLBS Law to seek expungement through FINRA Dispute Resolution.

Since 2007, the FA has served clients with integrity. In 2013, he inherited the account belonging to a couple who had purchased a fixed annuity in 2010. In early 2022, dissatisfied with low CD rates (0.65%), the couple sought higher returns through a fixed-index annuity (FIA). After thorough discussions, they purchased a Bankers Life and Casualty Co. FIA for $500,000, which they funded by liquidating CDs. The wife signed all required documents electronically in the FA’s presence, with her husband as a witness. The policy was issued on February 25, 2022.

In 2023, as interest rates rose to 5.50%, the husband expressed frustration with the FIA’s performance and sought to surrender it without penalties. On September 18, 2023, he hand-delivered a complaint letter alleging that the FA had forged his wife’s signature. Bankers Life investigated the claim and found it meritless after comparing signatures. Nevertheless, the firm settled with the couple for $45,000 to avoid litigation. The FA was not involved in the settlement, but the complaint remained on his CRD and BrokerCheck® records.

The FA filed his Statement of Claim with FINRA Dispute Resolution, seeking expungement of the claim under FINRA Rule 2080 and asserting that the forgery allegation was false and clearly erroneous. Bankers Life Securities did not oppose the request, though it denied the allegations in its December 2024 Statement of Answer.

The expungement hearing occurred via videoconference on May 16, 2025, with Austin Davis, Esq., presenting the FA’s case through testimony and evidence, including signed suitability and disclosure forms and witness statements confirming the couple’s signatures and the husband’s erratic behavior. The couple did not attend, despite having received proper notification.

The FINRA arbitration Panel reviewed the pleadings, testimony, and evidence. They found the forgery allegation false. In its award, the Panel noted that “The testimony of [the FA] and documentary evidence showed that [the wife had] signed the suitability form [] and the Disclosure Form [] digitally in the presence of [the FA] and [her] husband” and that, “A few days after signing these forms, the [wife] personally delivered checks to purchase the annuity at issue.”

On May 28, 2025, the Panel ordered the expungement of all references to the claim from the FA’s CRD and BrokerCheck® records, per FINRA Rule 2080. The decision restores the FA’s unblemished record, allowing him to continue his career free from the shadow of a false 2023 complaint and reaffirming his commitment to ethical service in the financial services industry.

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.