Attorney Israel Klein Wins Another FINRA Arbitration; Award Grants Expungement of Form U5
In the Matter of the FINRA Arbitration Case Number 17-00502. Arbitration award in favor of FINRA broker grants expungement – changing the reason for termination on broker's Form U5.
By: Imbesi Law P.C.
The FINRA broker's former employer initially reported that the broker was terminated due to "loss of confidence following an investigation of activity in a customer account that included short term mutual fund trading and trades incorrectly marked as unsolicited."
This negative information was publicly viewable on BrokerCheck and the FINRA broker's Form U5.
The FINRA broker filed a claim for arbitration that requested various remedies and expungement of all relevant information from his Form U5 and BrokerCheck report.
Attorney Israel Klein, of the law firm Imbesi Law P.C., successfully represented the FINRA broker throughout the arbitration process.
Mr. Klein was able to negotiate a settlement agreement that resolved the FINRA broker's claims for damages.
Mr. Klein also obtained expungement of the FINRA broker's Form U5 following a hearing before a panel of arbitrators.
The FINRA panel's award, dated January 31, 2019, set forth:
"The Panel recommends expungement of the Termination Explanation in the Form U5 . . . . The Termination Explanation shall be amended to read as follows: 'Terminated Employee At Will.' In addition, the Panel recommends that the Yes answer to . . . Form U5 Question 7F(1) be changed to No and the accompanying Disclosure Reporting Pages be deleted in their entirety."
The FINRA arbitrators also held that the initial termination explanation listed on the FINRA broker's Form U5 was false and defamatory, and assessed all hearing fees against the broker's former employer.
A copy of the decision can be obtained by accessing FINRA's website (Case Number 17-00502).
Imbesi Law P.C. represents both customers and brokers in FINRA Arbitration, including issues involving expungement of inaccurate information maintained in FINRA's CRD.
Imbesi Law P.C. Attorney Advertising 450 Seventh Avenue, New York, NY 10123.
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Israel Klein, Esq.
Imbesi Law P.C.