A Finra arbitration panel granted Ron Carson’s request to expunge his record with no objection from his previous firm, LPL Financial, according to an award document published by the industry’s self-regulator.
The founder and CEO of the $10 billion Carson Group requested the expungement of two customer disputes from his Central Registration Depository records, according to an award document published by Finra.
Carson named LPL, where he was registered from 1989 to 2017, as the respondent on the claim and requested a symbolic $1 in compensatory damages from the firm, Finra says. LPL said it didn’t oppose Carson’s request for expungement, although it asked that the $1 in damages be denied, according to the award document.
Carson ended his 28-year relationship with LPL in January 2017, moving his practice to Cetera Financial Group. At the time, Carson and LPL told the press that there were no hard feelings. A year later, however, Carson made an appeal to LPL advisors through LinkedIn, urging them to talk to him about why he had left the firm. And in March of 2018, amid reports that Cetera had started discussions on a possible sale to LPL, Carson told his partner companies that he would not stay with Cetera if it’s acquired by LPL.
Carson’s two customer disputes records were filed during his time with LPL, according to his BrokerCheck profile.
A 2002 complaint sought $12 million over alleged failures to carry out an investment plan, but the damages granted were $50,000, according to BrokerCheck. It’s unclear who was involved in paying the damages.
The second complaint, from 2003, involves allegations of unsuitable mutual fund selection and inadequate diversification. That claim, which originally sought damages of $20,000, was withdrawn, according to Carson’s BrokerCheck profile.
The director of Finra’s Office of Dispute Resolution determined that the first of the occurrences on Carson’s CRD record wasn’t eligible for arbitration as it involved an adverse award, and therefore the sole arbitrator on the case would not consider its expungement, Finra says.
Earlier this month, the arbitrator recommended the expungement of the other occurrence because the client had withdrawn her complaint against Carson, according to the award document.
Carson, meanwhile, withdrew his request for $1 in damages from LPL, Finra says.
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