reverse arbitration

2 replies [Last post]
Question kid's picture
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Joined: 2008-03-18

I have a client that has sent in a complaint that is totally fraudulent.  They are  saying I have stolen their funds and disappeared.  After an investigation it was found to be a false accusation.  Now I have a very ominous accusation on my permanent record.  The current broker dealer I am with told me I must get my own attorney to start that process.  How do I go about getting this expunged?  I would like to counter sue the client for submiting a false complaint.  I feel they owe me money. I will permanently lose money because many potential clients will read this and decide not to hire me.  This client has messed with my livelihood.  Don't I have a case against them?  Have there been any cases like this?  What were the outcomes?  What do you suggest?

stockattorney's picture
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Joined: 2010-09-09

Endorsing Bill's comments above.  Also, it would be interesting if you do decide to file an arbitration to see if the client even responds or participates.  If he doesn't it may speed the process along.  Remember to expunge you have to go the arbitration route.  The arbitration panel, according to FINRA Rules has to make a finding that the allegation against you was totally false or impossible.  You get an award then have to go to court to get it certified before FINRA can expunge.  That's the process simplified.

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