Last Updated on December 12, 2024

On July 25, 2023, a FINRA arbitration panel unanimously found in favor of two clients on a request to expunge two written customer complaints from their Central Registration Depository (“CRD”) Records. Expungement is considered an extraordinary remedy, and FINRA Rule 2080 specifies only three grounds to obtain expungement of customer dispute information from the CRD system:

– the claim, allegation or information is 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.

See FINRA Rule 2080(b)(1). Following an evidentiary hearing conducted by Chemere Ellis, where she presented arguments and exhibits in support of the clients’ petition for expungement, the arbitration panel made affirmative findings of fact that the claims, allegations, or information were false and granted the expungement request. For more information about FINRA expungement proceedings, please contact Chemere Ellis at cellis@chemereellis.com.