Texas Financial Advisor Wins FINRA Expungement of False Solicitation Allegation

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Award Date: May 11, 2026

Representative: Austin Davis, J.D., and Dochtor Kennedy, J.D.

Respondent Firm: J.P. Morgan Securities

Quick Summary

AdvisorLaw successfully represented a Texas-based financial advisor in a FINRA arbitration to permanently expunge a false customer dispute alleging the solicitation of an unapproved investment. The FINRA arbitration panel found that the claim was entirely erroneous, granting full expungement relief to restore the advisor's pristine 16-year BrokerCheck and CRD records.

Case Objective: Clearing a False Customer Dispute

A financial advisor in Texas with a 16-year unblemished career faced a single, unwarranted customer complaint alleging that he had solicited an unapproved investment. Supported by AdvisorLaw, the advisor pursued FINRA arbitration to expunge the erroneous disclosure from his CRD and BrokerCheck records.

Case Summary: The Outside Trucking Investment

The advisor launched his distinguished career in financial services in May 2010 and was registered with J.P. Morgan Securities LLC in New Braunfels, Texas from July 2013 to May 2015.
In early 2015, he assisted his acquaintance with a $101,000 investment in a local start-up trucking business. The acquaintance was not a client of the Respondent at the time, and the investment was a private transaction executed outside of the firm and without any involvement or approval by the advisor or J.P. Morgan.
The acquaintance was vice president of operations at another trucking company. He had an aggressive risk tolerance and objectives centered on starting his own businesses, seeking lending and business banking support. In May 2015, the advisor left J.P. Morgan and had no further contact with the acquaintance.
Later, the acquaintance obtained a business line of credit from J.P. Morgan and disclosed the trucking investment. After a DWI charge impacted his businesses, the trucking company fully refunded his $101,000 investment. In September 2015, the acquaintance reported a dispute alleging that the advisor had “solicited an unapproved investment” and sought $101,000. J.P. Morgan denied the claim following an investigation, and the acquaintance took no further action.

Resolution: FINRA Arbitration and Expungement Granted

The advisor initiated expungement proceedings in October 2025. The Respondent filed a neutral response. The Customer was properly served and did not appear at the hearing. The three-arbitrator Panel convened by videoconference on April 28, 2026, in Houston.

After considering the advisor’s testimony, arguments presented by AdvisorLaw’s Austin Davis, Esq., and Dochtor Kennedy, Esq., and the exhibits, the Panel granted full expungement relief. As articulated in the final award, the Panel found that:

"The record clearly showed that the Customer was an acquaintance of [the advisor,] who wanted assistance in opening an account at the Respondent firm in order to finance an investment that he wished to make in private start up trucking business. ... It was clear that the idea of investing in the trucking company originated with the Customer and thus his claim was both erroneous and false."

The ruling permanently cleanses the advisor’s record of this baseless complaint, affirming his ethical conduct and professional integrity.

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Expungement Award