Facts

The HSH Family Trust brought a FINRA action against Wells Fargo Advisors LLC relating to its investments in the Franklin Templeton California Tax Free Bond Fund and in unspecified preferred stocks. It asserted claims for negligence, negligent supervision, negligent misrepresentation, breach of fiduciary duty, fraud, and violations of Section II of the Rules of Fair Practice and the California Corporate Securities Law of 1968. The parties settled, leaving before the arbitration panel the issue of Wells Fargo's motion for expungement of non-party Gracelyn D. Root's Central Registry Depository records.

CLAIMANT'S CONTENTIONS:
Claimant did not participate in the expungement hearing and did not take a position on Wells Fargo's request for expungement.

Result

The panel recommended expungement of all reference of the proceedings from Root's registration records, unanimously finding the first claim made by claimant's representatives regarding preferred stocks false and the second claim involving the Franklin Templeton California Tax Free Bond Fund also false by a two to one majority vote.

Other Information

ARBITRATORS: Richard M. Norman, Laurent C. Vonderweidt, Herbert Murez.