Christine Lazaro on Expungement Process that Allows Brokers to Clear Wrongdoing from Their Records

In the Media

PIABA seeks more Capitol Hill influence in 2014 
By Mark Schoeff Jr.
Investment News
December 27, 2013

Excerpt:

A group of lawyers that represents investors in claims against brokers wants to have more influence in the halls of Congress.

“We're taking a more active role in trying to impact legislation,” said Jason Doss, president of the Public Investors Arbitration Bar Association. “No other organization has the practical experience to talk about the real-life impact on investors when they're given bad investment advice.”

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Another issue that the group is trying to put on the radar of lawmakers is the so-called expungement process, or the method by which brokers can get wrongdoing cleared from their records in a database run by the  Financial Industry Regulatory Authority Inc.

A PIABA study released in October found that expungement was granted more than 90% of the time between May 2007 and December 2011 when it was requested by brokers as part of a stipulated award or settlement.

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 “[Expungement] is getting a much closer look now that the PIABA study has come out and shown how frequently customer complaints are being expunged,” said Christine Lazaro, chair of the PIABA legislation committee and director of the Securities Arbitration Clinic at St. John's University School of Law.

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