Successful FINRA Arbitration

March 11th 2024

by Owen Harnett

Summary of Keypoints

  • Managing Attorney Michael Bessette of HLBS Law achieved a successful outcome in a FINRA arbitration case that began in 2020, where the client sought expungement of customer dispute information from CRD records to continue working with a clean record.
  • After the case progressed through most of the FINRA arbitration process, FINRA denied the forum before a decision was issued, prompting Bessette and his team to appeal to the SEC on the grounds that the removal was unlawful.
  • The SEC agreed with HLBS Law’s argument, resulting in the case being reopened in July 2023, though further delays occurred due to the passing of the original arbitrator and the appointment of a new arbitrator.
  • Following a new hearing in January 2024, the arbitrator found that the customer statements were erroneous and the allegations against the client were false, leading to a favorable outcome for expungement.

Our very own Michael Bessette, Managing Attorney at HLBS Law had great success in his FINRA arbitration case that went on for three and a half years. Bessette’s client was seeking expungement in 2020 over customer dispute information. The client needed these claims removed from the CRD records in order to continue their work with a clean record. Once the case made its way through nearly the entire process of FINRA arbitration, awaiting a decision, the case was denied forum by FINRA.

Bessette and team were able to appeal to the SEC with the argument: it was unlawful for FINRA to remove the case at this stage. The SEC agreed with the argument made by Bessette and the case was reopened in July of 2023. Unfortunately, another delay had to do with the original arbitrator passing away. It should be noted, this arbitrator was an incredible arbitrator, and she will be missed. A new arbitrator was assigned and a new hearing was held in January 2024.

After considering pleadings, testimony, and evidence, the arbitrator was able to confirm that the customer statements were “erroneous” and the claims and allegations against the client were “false”. While this is a rare case taking a long time to resolve, HLBS Law will not stop until our clients get their day in arbitration.

Call our attorneys at HLBS Law if you need of an attorney for your expungement case or any other legal matter related to FINRA.

Owen Harnett
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