New Jersey Advisor Clears Record of Two False Customer Disputes

For an entire decade, this New Jersey-based financial advisor (FA) had unblemished Central Registration Depository (CRD) and public BrokerCheck® records — when his record was marred with the first of two customer dispute disclosures in 2015. Filed by MSI Financial Services, Inc. (f/k/a MetLife Securities Inc.), the first disclosure falsely alleged unauthorized liquidation of a Roth IRA. The second, filed by MML Investors Services, LLC in 2023, wrongly claimed that the FA had misled a client about an investment’s management. These misleading disclosures severely harmed the FA’s professional reputation and employment prospects. Determined to restore his record, the FA engaged HLBS Law to pursue expungement through FINRA Dispute Resolution.

The FA began his career in March of 2005. In 2009, a couple seeking retirement planning became clients of the FA. In 2010, the wife opened a Roth IRA with a $100 initial investment and $400 monthly contributions, which she later reduced to $100. In January 2012, she orally instructed the FA to liquidate the IRA, acknowledging the potential tax penalties. The FA facilitated the liquidation via a signed letter of intent, and a $5,285.88 check was issued to her. In 2013, amid divorce proceedings, the wife falsely claimed that the liquidation had been unauthorized and alleged that her husband had been involved. MetLife’s 2015 investigation found no merit to the allegations, but the disclosure remained on the FA’s record.

In 2007, another client who was a high-income professional sought to roll over her 401(k) for growth. In 2012, the FA recommended the Griffin Capital Essential Asset REIT, which aligned with the client’s moderate risk tolerance. The FA fully disclosed all risks and illiquidity. The client invested $45,000, which represented 10% of her liquid net worth. Over the years, the FA advised against selling during tender offers and market fluctuations. In 2023, after the REIT’s value dropped, following its NYSE listing as Peakstone Realty Trust. The client filed a complaint, alleging misrepresentation. She later clarified in a December 2024 affidavit that her complaint targeted the REIT, not the FA, and she supported his expungement. MML’s investigation found no merit to the second claim, as well.

In October 2024, the FA filed a Statement of Claim with FINRA Dispute Resolution, seeking expungement of both customer disputes and citing their false and erroneous nature. The respondents filed a joint Statement of Answer, not opposing expungement, and they appeared at the videoconference hearing on April 23, 2025. The customers did not attend, despite receiving due notice.

Austin Davis, Esq., of HLBS Law presented the FA’s case, supported by testimony and exhibits, including the 2012 letter of intent and the 2024 client affidavit. The three-arbitrator Panel found the first complaint false, as the client had authorized the IRA liquidation, and the second clearly erroneous, as the client’s affidavit confirmed no intent to target the FA. 

On May 7, 2025, the Panel ordered expungement of both occurrences from the FA’s CRD and BrokerCheck® records, citing FINRA Rule 2080(b)(1)(A) and (C). The expungement is contingent on court confirmation.

This ruling clears the FA’s record, allowing him to continue his career free from the stigma of baseless 2015 and 2023 disclosures and reaffirming his commitment to ethical financial service.

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.