Facts

Ronald Valpey filed an arbitration claim against Merrill Lynch seeking expungement of a customer complaint from his Central Registration Depository records.

CLAIMANT'S CONTENTIONS: Claimant contended that the claim, allegation, or information contained in the underlying customer complaint was factually impossible, clearly erroneous, or false.

RESPONDENT'S CONTENTIONS: Respondent did not take a position on claimant's expungement request but did object to claimant's request for compensatory damages.

Result

The arbitrator recommended expungement of all references to the underlying customer complaint from claimant's registration records, finding that the claim, allegation, or information was false. Specifically, the arbitrator found that the customer filed the underlying complaint roughly two years after claimant ceased employment by respondent, and during the time claimant was the customer's advisor, the customer specified his money should be invested in equity mutual funds which were more aggressive than the conservative portfolio claimant recommended. Further, claimant advised the customer regarding the risks involved in such investments, and the customer was aware at all times of the risks and speculative nature of such investments.

Other Information

ARBITRATOR: Mary M. O'Neil