Malecki Law is pleased to announce that a FINRA arbitration panel granted a large number of expungements for three broker clients with customer complaints from their sale of Puerto Rican closed-end funds. A total of 28 expungements were granted as part of an award of a FINRA arbitration claim filed on behalf of nine Puerto Rico brokers against UBS; only three sought expungements. This winning result for our UBS Puerto Rico broker expungement case was detailed in an unusually long 40-page Award posted to the FINRA Dispute Resolution Portal yesterday.
Malecki Law filed this case in July 2015 and worked through the completion of discovery before teaming up with Harris, St. Laurent & Chaudhry LLP and Benjamin Quinones Lebron Esq. to try the case in Puerto Rico as a team. The FINRA arbitration claim was on behalf of nine brokers who sought $30 million plus fees in addition to expungement. The monetary portion of the arbitration claim was resolved to the satisfaction of all parties. Only three of the nine brokers chose to move forward with expungement claims after the monetary portion was resolved.
The majority-public panel issued the award after considerable deliberation regarding the merits of the broker’s request. In fact, the FINRA arbitration panel had a week of hearings, a time frame longer than usual. FINRA considers expungement to be an “extraordinary remedy” that should only be recommended in certain situations that do not compromise investor protection.