Facts

An arbitration dispute was filed by Claimant Steven Phillip Margulin against Respondents Centaurus Financial Incorporated and National Planning Corporation involving Claimant's request to have his record expunged from the Central Registration Depository that contained defamatory complaints.

CLAIMANT'S CONTENTIONS: Claimant contended he was defamed by Respondent NPC when NPC submitted a complaint that alleged Claimant was involved in the sale of illegal securities. Claimant contended he was never subjected to an internal review for fraud or wrongful taking of property, nor notified of such allegations until after his registration record was examined.

RESPONDENTS' CONTENTIONS: Respondent Centaurus did not oppose Claimant's requested relief. Respondent NPC contended it was no longer a FINRA member firm and no longer operated as an individual deal broker entity. NPC additionally contended Claimant was not entitled to any monetary relief.

Result

The arbitrator recommended claimant's record be expunged from the Central Registration Depository after it concluded the complaint was erroneously made. Evidence presented showed the sale was controlled and authorized by the actual customer and not claimant.

Other Information

ARBITRATOR: George L. Tindall.