Texas Advisor Clears Records With Two Successful Customer Dispute Expungements

• Two Disputes, One Arbitration: A Texas financial advisor with over 20 years of experience successfully expunged two separate customer disputes from his CRD and BrokerCheck records in a single FINRA arbitration.
• "Clearly Erroneous" Findings: The FINRA arbitration panel found both claims, which were filed against Kestra Investment Services, LLC, to be "factually impossible or clearly erroneous."
• Restored Perfect Record: The expungement order removes misleading allegations of unsuitable and aggressive portfolio allocations, restoring the advisor's otherwise perfect professional record.
• Expert Legal Representation: The advisor was represented by Dochtor Kennedy, MBA, J.D. and Austin Davis, J.D. of AdvisorLaw, who presented extensive evidence to prove the baseless nature of the claims.
• Client Authorization is Key: The panel's decision was supported by evidence showing that both clients had authorized their trades and received full risk disclosures, and in one case, had even withdrawn significant gains from the portfolio.

A seasoned Texas financial advisor with over two decades in the industry sought to clear the only disclosures on his otherwise-perfect Central Registration Depository (CRD) and BrokerCheck® records. The disputes—one from 2016 alleging unsuitable portfolio selections, and another from 2022 claiming overly aggressive allocations—were causing continual harm to his professional reputation. He hired AdvisorLaw to seek expungement of the disputes through the FINRA Dispute Resolution forum.

The advisor began his career in 2001 and was registered with Kestra Investment Services from January 2005 to March 2017.

In 2007, a 44-year-old client, who was a pilot with 15 years of investment experience, engaged the advisor to manage an income-focused portfolio for his family, including a son with Down syndrome. The advisor recommended a diversified income portfolio with energy sector investments. He fully disclosed all of the risks, including price volatility and illiquidity. The client authorized all transactions and received over $80,000 in distributions between 2007 and 2015. 

Yet in 2016, the client alleged that the advisor had made unsuitable portfolio selections over the prior 18 months, and he sought $232,042 in damages. Kestra closed the complaint with no action, and it was recorded as “Closed/No Action” on the advisor’s records.

In 2011, a 73-year-old retired client with over 25 years of investment experience transferred her $515,723 IBM 401(k) to the advisor. She sought income and growth for her daughter with Down syndrome. The advisor recommended a diversified portfolio, including stocks, bonds, annuities, and REITs, and he provided full risk disclosures. The client authorized all trades, withdrawing $220,741 and gaining $105,181 by 2020.

However, in 2022, she alleged that the advisor had been overly aggressive with her portfolio allocations, and she sought $200,000 in losses. Kestra denied the claim after investigation, and it was not pursued further, but it remained on the advisor’s records.

In October 2024, the advisor filed a FINRA Statement of Claim, asserting that both disputes were “false” and “clearly erroneous.” A videoconference expungement hearing occurred on June 4 and July 31, 2025, where AdvisorLaw’s Dochtor Kennedy, MBA, J.D. and Austin Davis, J.D. presented client records, trade confirmations, and the advisor provided testimony, as did a witness, that confirmed that the customers had received full disclosure and had authorized the investments. Kestra took no position on the expungement, and the clients did not attend. No settlement agreements existed, as neither dispute had resulted in a settlement.

After reviewing evidence and testimony, the FINRA arbitration Panel found the claims to be factually impossible or clearly erroneous. The Panel confirmed the suitability of the 2007 client’s portfolio, noting consistent income and client authorization, and they found that no losses had occurred. 

For the 2022 dispute, the Panel verified the portfolio’s suitability at the time of investment, with documented client approvals and gains, dismissing market volatility as a basis for the claim. The Panel deemed both disclosures lacking regulatory value and potentially misleading.

On August 8, 2025, the Panel granted expungement of both disclosures from the advisor’s CRD and BrokerCheck® records, reaffirming his professional integrity and restoring his impeccable public record.

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.