Financial Professionals – Wrongful Termination and Defamation – Securities and Financial Fraud Attorneys

When a financial professional like a financial advisor, financial planner, or dealer is terminated by their firm a Form U5 must be filed. The Form U5 explains the reasons behind a termination. If a termination is irregular or improper then the U5 form might contact some defamatory accusations. 

Financial advisors know that a mark on an advisor’s U5 form is not just difficult to get erased but also potentially career-ending. Any disclosures on a U5 form appear on BrokerCheck which means it’s available to the public. This type of derogatory mark on a person’s career could also cause a FINRA inquiry. 


Representing Financial Advisors throughout the country

Wrongful Termination

There can be career-wrecking implications when a financial advisor is terminated. This is because of the Form U5 filing. Anytime an advisor quits or is terminated from their position this form must be filed with FINRA and the Central Registration Depository. A defamatory mark on this filing can end an advisor’s career. 

Retaining legal counsel and representation from experienced securities and financial fraud attorneys can be career-saving. We can investigate our client’s situation and file wrongful termination and defamation suits. Being subject to a wrongful termination, hostile work environment, discrimination, and harassment is illegal and employees are protected under the law.


Employee Forgivable Loans (EFLs)

We’ve seen cases where financial advisors find themselves dealing with Employee Forgivable Loans. These EFLs are promissory notes (loans) that brokerage firms sometimes use when finding new advisors. Firms offer these incentives to advisors but this can backfire. 

These loans are complicated, and they actually have to be paid back. If an advisor is lured to new employment with EFLs being part of the package they can be on the hook to pay back this incentive. An EFL can be a lot of money to pay back all at once and coupled with the interest this can have terrible consequences. Since this is a loan, failure to pay this back can result in collections claims and a breach of contract suit. All of this can result in FINRA reprimands. 

You do not have to face a large firm on your own. Our team can help represent you against the brokerage’s misrepresented offers, bad acts, and wrongful termination that might be causing you to be liable for the EFL. 


Expunging Financial Advisor’s Records

Employers, regulators, and sometimes the public, all have access to a financial advisor’s records through FINRA and the Central Registration Depository (CRD). Information regarding an involuntary employment termination, customer complaints, FINRA arbitration, internal investigations, and arrests are all available to see. 

An advisor doesn’t have control of what ends up in these records. False or defamous remarks can end up costing a person their career if they don’t act fast. However, expungement/appeal is possible. Our securities attorneys have the experience necessary and knowledge of the financial industry’s processes to help you clear your name. 


Contact us today

Leaving a job does not have to mean the end of a career. Retaining legal counsel and representation before, during, or after a termination should be your course of action, especially if you feel improperly let go. Our securities attorneys can properly guide you through your legal options and give you the best course of action. LSC securities attorneys have decades of combined experience dealing with financial fraud and securities litigation. Contact us today at 312-291-4650