Currently-Unregistered Advisor Clears Records With Termination Expungement

In 2022, a dedicated New York-based financial advisor (FA) with an unblemished, six-year career faced a damaging Form U5 termination entry on his Central Registration Depository (CRD) and public BrokerCheck® records. The entry, filed by UBS Financial Services Inc., alleged that the FA was discharged for entering an undisclosed financial agreement with a third party to provide compensated research reports — a claim that the FA maintained was false and defamatory. This misleading disclosure severely harmed the FA’s professional reputation and employment prospects — leaving him unregistered with any broker-dealer or investment adviser firm to this day. Determined to restore his good name, the FA retained HLBS Law to pursue expungement through FINRA Dispute Resolution.

Beginning in April 2016, the FA built a reputable career at UBS, serving his New York clients with integrity. In his regular course of business for his wealth management practice, the FA sent regular newsletters to both clients and prospects. The newsletters were based on UBS’s monthly newsletter. Around February of 2020, a lifelong friend of the FA, who enjoyed the FA’s newsletters, asked the FA to perform some market research for him, and the friend offered to compensate the FA. 

The FA intended to enter into a written agreement with his friend, whereby the FA would provide market-research reports for compensation. However, the pair did not ultimately enter into any such agreement. The FA provided his friend with publicly-available market research reports, and he did not offer any investment ideas to the friend. 

The friend suffered with substance abuse and frequently acted in an unstable manner. At one point, he sent unsolicited cryptocurrency advice via email to all of his contacts, including the FA. The friend then claimed that each of the contacts owed him $1,000 for the information. Although the FA had neither requested the information nor stated that he would compensate the friend for the information, the friend misinformed UBS regarding an alleged business arrangement with the FA.

After being interviewed by UBS compliance, the FA was terminated for allegedly entering into an undisclosed financial agreement with a third party who compensated him for providing research reports outside the scope of his employment with the firm.

UBS filed a Form U5 that falsely implied unethical conduct, significantly impacting the FA’s ability to secure employment in the financial services industry. Following his termination, he faced extreme financial hardship due to the disclosure’s misleading nature.

The FA filed his Statement of Claim with FINRA Dispute Resolution in October 2024, seeking expungement of the Form U5 entry and related Form U4 disclosures, alleging they were defamatory and misleading under FINRA Rule 2080. UBS filed a statement of answer and did not oppose the expungement request. 

The expungement hearing was conducted via videoconference, with HLBS Law’s Austin Davis, Esq., and Owen Harnett, Esq., presenting Brickley’s case through testimony and supporting evidence, including documentation showing that no financial agreement or compensation had existed. UBS did not appear at the hearing, despite receiving due notice.

The sole FINRA Arbitrator reviewed the pleadings, testimony, and evidence. She found the Form U5 entry to be defamatory in nature, as it inaccurately suggested that the FA had engaged in improper conduct, when in fact his actions were part of legitimate client prospecting with no unethical or compensable activity. 

In her award, dated May 16, 2025, the Arbitrator ordered the expungement of all references to the occurrence from the FA’s CRD and BrokerCheck® records. The Reason for Termination was changed to “Voluntary,” the Termination Explanation was deleted, and related “Yes” answers were changed to “No.” 

Additionally, the Arbitrator noted that the entry’s misleading nature caused significant harm, warranting expungement contingent on confirmation by a court of competent jurisdiction.

The decision will restore the FA’s unblemished professional record. With this victory, he can resume his career, free from the shadow of a baseless 2022 disclosure, and reaffirm his commitment to integrity 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.