Finra arbitrators have ruled in favor of a claim brought by a Raymond James broker seeking to expunge a customer dispute from his record, calling the customer’s claim against the broker “overstated” and “meritless,” the industry’s self-regulator says.
Keith Davis filed the claim to expunge a 2017 dispute alleging breach of fiduciary duty, negligence, breach of contract and violation of Finra rules from 2004 through 2017, according to an arbitration award published by Finra and BrokerCheck records.
That claim sought $55,000 in damages but was settled for $7,500, according to BrokerCheck.
In the broker comment section, Davis wrote that the client had a profit in a position that was then transferred to another advisor in 2012, and “[m]any years after transferring the position, it turned against him and he filed a complaint against me.” Davis also wrote that he was against Raymond James settling the case, but the firm decided it would be more effective to settle, according to BrokerCheck.
Davis named Raymond James & Associates — where he remains registered, according to BrokerCheck — as the respondent, according to an award document published by Finra.
The company didn’t oppose his request for expungement, according to the award document. Moreover, in September 2019, the customer who had filed the dispute in 2017 indicated through his lawyer that he too wasn’t opposed to the expungement, Finra says.
The arbitrators granted Davis’ request for expungement of the dispute, ruling that it “finds it serves no public or regulatory interest to keep an exaggerated claim on the record of this broker,” according to the award document.
“The Customer’s Statement of Claim lacked credibility and was structured to elicit sympathy from a claim otherwise devoid of merit,” the arbitrators wrote. “The plural is great for effect but not the truth.”