by Bill Singer
In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claimfiled in August 2011, Claimant Arjangravesh asserted that he had been wrongfully terminated – in an Amended Statement of Claim filed in October 2011, he subsequently dismissed individual respondents Irwin and McCullah. Claimant sought an expungement of the wrongful termination matter from his Central Registration Depository records (“CRD”); $2,011 in attorneys’ fees, and $75 reimbursement for what are described as “application fees.” In the Matter of the FINRA Arbitration Between Roni Arjangravesh, Claimant, vs. Chase Investment Services Corp., Sean Roderick Irwin, and Scott Franklin McCullah, Respondents (FINRA Arbitration 11-03117, August 24, 2012).
On July 6, 2012, Claimant clarified that he was only seeking an award of expungement and withdrew all other claims.
Bill Singer
On July 25, 2012, the Panel conducted an expungement hearing, at which Respondent Chase did not appear.
Panel Rules
Based upon a finding that Arjangravesh had been defamed, the FINRA Arbitration Panel recommended the expungement of the Termination Comment in Section 3 of Claimant Arjangravesh’s Uniform Termination Notice For Securities Industry Registration (“Form U5”) as filed on April 26, 2011 by Chase Investment Services Corp. The Panel recommended that the comment be replaced with “TERMINATION WITHOUT CAUSE” with theReason for Termination of “Discharged” to remain.
FORM U5
Internal Review Disclosure
7B.
Currently is, or at termination was, the individual under internal review for fraud or wrongful taking of property, or violating investment-related statutes, regulations, rules or industry standards of conduct?
. . .Termination Disclosure
7F.
Did the individual voluntarily resign from your firm, or was the individual discharged or permitted to resign from your firm, after allegations were made that accused the individual of:
1. violating investment-related statutes, regulations, rules or industry standards of conduct?
2. fraud or the wrongful taking of property?
3. failure to supervise in connection with investment-related statutes, regulations, rules or industry standards of conduct?FORM U4
Termination Disclosure
14J. Have you ever voluntarily resigned, been discharged or permitted to resign after allegations were made that accused you of:
(1) violating investment-related statutes, regulations, rules, or industry standards of conduct?
(2) fraud or the wrongful taking of property?
(3) failure to supervise in connection with investment-related statutes, regulations, rules or industry standards of conduct?
The Panel recommended that the answers to Form U5 Questions 7B and 7F(1) be changed to “No,” and the accompanying Internal Review and Termination Disclosure Reporting Pages (“DRPs”) shall be deleted in their entirety. Finally, the Panel recommended conforming changes to Arjangravesh’s Form U4, specifically Question 14J(1) to be answered “NO”and the accompanying Termination Disclosure Reporting Page shall be deleted.
Bill Singer’s Comment
An online FINRA disclosure document as of August 28, 2012, noted that Arjangravesh was “Discharged” on March 30, 2011, based upon these allegations from reporting sources:
NON-SECURITIES & NON-CLIENT RELATED. REGISTERED REP ACCESSED THE ACCOUNTS OF COWORKERS FOR THE STATED PURPOSE OF OBTAINING THEIR BIRTHDATES AND PLACING THEIR BIRTHDATES ON HIS CALENDAR.
…
TERMINATED BY AFFILIATE BANK – NON SECURITIES RELATED. REGISTERED REP ACCESSED THE ACCOUNTS OF COWORKERS WITHOUT A BUSINESS REASON TO DO SO. FOR THE PURPOSE OF OBTAINING THE COWORKERS BIRTHDATES.
In response to the above allegations concerning the circumstances of his termination, the online FINRA disclosure reflects Arjangravesh’s response:
I ACCESSED THE ACCOUNT INFORMATION OF APPROXIMATELY 8 OF MY ASSIGNED BRANCH COLLEAGUES FOR THE SOLE PURPOSE OF OBTAINING THEIR BIRTHDATES. I DID NOT ACCESS ANY FINANCIAL INFORMATION NOR RETAINED ANY PERSONAL INFORMATION ONLY BIRTH DATES INFORMATION, WHICH I PLACED ON MY OUTLOOK CALENDAR. I DID THIS ONLY TO IMPROVE MY WORKING RELATIONSHIP WITH MY COLLEAGUES, SO THAT I COULD ACKNOWLEDGE THEIR BIRTHDAYS
Hey — look — I don’t even know where to begin with this one. So, how about you just blow out the candles?