The Kueser Law Firm represents brokers and financial advisors in stockbroker expungement cases involving complaints reported on their U4 or U5.
Brokers and Financial Advisors Can Remove Customer Complaints from Their Permanent Record Through the Stockbroker Expungement Process.
Customer complaints against stockbrokers and financial advisors are serious. Regardless of whether a customer substantiates or proves their complaint, in the financial services industry, the CRD records complaints on a stockbroker or financial advisor’s permanent record. Consequently, these complaints negatively impact a stockbroker or financial advisor’s practice.
Stockbroker Expungement cases are Usually Very Complex Matters.
Ordinarily, stockbroker expungement cases are technical in nature and brokers and financial advisors should not try to navigate a case on their own. Specifically, FINRA provides a special arbitration procedure for expungement cases. As a result, the stockbroker must follow specific rules regarding filings, discovery, hearings, and providing notice to the customer.
Stockbroker Expungement Cases Typically Arise in Three Situations.
Generally, there are three specific situations in which stockbroker expungement cases come up.
First, a customer files an arbitration claim against a firm and the broker/advisor. In that instance, the broker/advisor can request an expungement in the arbitration case.
Second, a customer files an arbitration claim against the broker-dealer firm but does not name the broker/advisor. In that situation, the broker/advisor can file a motion to intervene in the arbitration and seek expungement.
In both of the above-referenced situations, the broker/advisor could also wait until the conclusion of the arbitration and file a separate arbitration claim for expungement against the broker-dealer firm.
Third, a customer files a complaint against the broker/advisor but does not file an arbitration claim. The CRD still records many of these complaints on the broker/advisor’s BrokerCheck report and can impact their professional reputation. In those instances, the broker/advisor can still take steps to have that complaint expunged.
To Win an Expungement Action, a Stockbroker or Financial Advisor Must Prove One of Three Things.
To win an expungement action, the broker/advisor must be able to demonstrate:
- The claim, allegation or information was factually impossible or clearly erroneous,
- The registered person was not involved in the alleged investment-related sales practice violation, forgery, theft, misappropriation or conversion of funds, OR
- the claim, allegation or information is false.
Again, proving one of the factors above often involves a technical application of law. As such, a stockbroker or financial advisor seeking expungement should consult with a stockbroker expungement lawyer.
Contact The Kueser Law Firm if You Recently Had a Customer File a Complaint Against You and You Would Like to Discuss Expungement.
The Kueser Law Firm represents stockbrokers and financial advisors in expungement cases. If you would like to speak with an attorney about an expungement matter, please complete the form below or call us at (816) 374-5865.
CONTACT THE KUESER LAW FIRM
If you would like to speak with a stockbroker expungement attorney, please complete the form below and an attorney will contact you.
If you require immediate assistance, please call The Kueser Law Firm at (816) 374-5865.