Skip navigation

Effect of $25,000 complaint that former employer settled?

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 2, 2010 2:20 am

I am preparing to get back in the business after 4 years in another industry.  I had a clean record outside of one ridiculous (really) complaint that a client filed and my firm decided not to mess with and settle.  It was for closing costs on a real estate related security and the customer decided he didn't want to pay the expenses AFTER the transaction was closed and AFTER he was givena  week for his attorney and him to review the closing statement.  It was for about $25,000 as I remember.

It was the only complaint on my record and I want to know how this may or may not affect my plan to get back into the business.  New employer would be a bank wealth management department.  It seems to me that almost everyone I know in the business has at least one complaint, some more than that and they all seem to have no problem moving from firm to firm.


Nov 2, 2010 9:42 pm

I don't think it will be a big hindrance. But, be very well prepared, and even pre empt the discussion. Carefully, rationally explain the circumstances, and leave nothing out of the story.

Nov 2, 2010 10:13 pm

Thanks Big.  Exactly what I was planning to do.  Written statement to put in their hand you think?

Nov 7, 2010 1:16 am

Unfortunately it looks like you got sued and left the business.  I suspect that the new BD will be concerned with

the circumstance of the complaint, your finacial condition, why you left the business, your numbers while in

the business as well as many other factors.  In my opinion, if you check out as a good guy you, chances are

someone will hire you.  Good luck.

Nov 8, 2010 3:59 pm

As a prior chief compliance officer of 10 years, I know that every firm has been scrutinizing any "dings" on the Form U4/U5.  When talking to the recruiter or even the compliance officer or manager interviewing you I would suggest being forthright about the disclosure and even have a prepared written statement to include in your application.  This will also help the BD's registrations dept when they file the Form U4.  They can use the statement to be proactive with the state, if it happens to be a state that overly scrutinizes disclosures made since last registration approval (e.g., Florida).  

Nov 9, 2010 1:20 am


I left the business for a very good offer at the same bank I am at now.  The position was lending related, thus my licenses expiring.  Leaving the business had nothing at all to do with being sued....and I was not sued.....nor was the firm.  I agree on the written statement and plan to do so when I meet with the final decision maker.