Hahn Loeser Partner Andrew S. May recently obtained a confirmation of an Order of Expungement of a Financial Industry Regulatory Authority (FINRA) arbitration. In this case, a FINRA arbitration panel had ruled that the Registered representative’s Central Registration Depository (CRD) record should be expunged of a customer complaint and a separate customer arbitration. However, in an unusual request, the Illinois Securities Department challenged the ruling and asked that it be vacated in the Circuit Court of Cook County. The Department claimed that the arbitration ruling was biased in favor of May’s client because the Department did not participate in the expungement arbitration.
May argued that the Illinois Securities Department lacked standing, and its argument did not meet its burden of proof. The court subsequently found that the Department’s arguments were not viable and denied the Department’s Petition to Vacate the FINRA arbitration and granted Confirmation of the Arbitration Award granting expungement. May’s client now has a clean record again after the CRD removed the customer complaint and arbitration from his record.
