Protecting Your Reputation With A FINRA Expungement Lawyer In Pittsburgh

As every securities professional knows, derogatory information appearing on a public records system can severely damage one’s career. Attorney Michael J. Betts understands the professional and financial consequences of these disclosures, and he makes it his goal to provide strong legal representation for securities professionals in Pennsylvania expungement proceedings.

Expungement is a process through which a financial adviser, broker or other securities professional may request the “expungement,” or removal, of information reflected on the professional’s record. It is available under the Financial Industry Regulatory Authority (FINRA) rules in certain circumstances and is pursued primarily to protect the securities professional’s reputation, as the negative information at issue is usually available to the investing public through FINRA’s CRD/BrokerCheck system.

The Purpose Of FINRA Expungement

These claims generally arise from steps that may be taken under FINRA rules, in certain circumstances, to expunge negative information from a Form U4 or U5. Many of these cases relate to the requested expungement of negative customer dispute information, i.e., disclosures that appear on a Form U4 or U5 related to a customer complaint that are available to the public through the CRD/BrokerCheck system.

Expungement of this information is possible under specific conditions governed by FINRA Rules 2080, 12805 and 13805. The FINRA arbitrator or panel may grant expungement if they determine:

• The customer’s dispute or allegation is unsupported by the facts or is a clear error.
• The financial adviser had no involvement in the alleged wrongdoing.
• The claim or allegation is baseless.

For more information about expungement of customer dispute information, see FINRA’s summary of the process here.

Beyond Customer Disputes

Although most expungement claims request the removal of negative customer dispute information, some expungement proceedings request the removal of other negative information not related to a customer dispute. These cases usually relate to negative statements on Form U5s and the firm’s characterization of the reasons for the adviser’s termination.

Those reasons may be false and defamatory and therefore subject to challenge in a FINRA expungement proceeding. These claims may be limited to a request for expungement. In appropriate circumstances, they may be combined with requests that the arbitration panel award significant damages in favor of the securities professional for defamation.

Ready To Defend Your Professional Record? Call Michael J. Betts LLC Today.

Don’t let a false claim derail your career. Attorney Michael J. Betts works tirelessly to help securities professionals pursue a positive outcome in expungement proceedings. To schedule a confidential consultation and discuss your options, contact his Pittsburgh office today. Call the firm at 412-899-6827 or fill out the firm’s online form here.