California, County of San Diego, Case No CU-MC-CTL]

Transcription

1 CCCaaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff GIBSON, DUNN & CRUTCHER LLP ETHAN D. DETTMER, SBN 0 EDettmer@gibsondunn.com Mission Street, Suite 000 San Francisco, California - Telephone:..800 Facsimile:..80 Attorneys for Financial Industry Regulatory Authority, Inc. (FINRA) 7 8 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA 8 TROY FLOWERS, an individual, v. Plaintiff, FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC., a private company; DOES through 0, inclusive, Defendants. CASE NO. 'CV0 DMS JMA N O T I C E O F R E M O V A L O F A C T I O N B Y F IN A N C I A L INDUST R Y R E G U L A T O R Y A U T H O RI T Y, IN C. [Removal from the Superior Court of California, County of San Diego, Case No CU-MC-CTL] 0 7 T O T H E C L E R K O F T H E A B O V E-E N T I T L E D C O UR T, PL A IN T I F F, A ND C O UNSE L O F R E C O RD: PLEASE TAKE NOTICE that pursuant to 8 U.S.C. and, and in accordance with 8 U.S.C., Defendant Financial Industry Regulatory Authority, file this Notice of Removal to the United States District Court for the Southern District of California, and in connection therewith, state as follows: 8 Gibson, Dunn & Crutcher LLP S NOTICE OF REMOVAL OF ACTION

2 CCCaaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Gibson, Dunn & Crutcher LLP I. ST A T E M E N T O F T H E ST A T E C O UR T A C T I O N. On or about September, 0, Plaintiff Troy Flowers filed a complaint in equity for expungement of public FINRA records in the Superior Court of the State of California for the County of San Diego against Financial Industry. A true and correct copy of the Complaint is attached hereto as Exhibit A to the Declaration of Ethan D. Dettmer Dettmer filed concurrently herewith. On September, 0, Mr. Flowers served FINRA with a copy of the Complaint captioned Troy Flowers v. Financial Industry Regulatory Authority, Inc. and which bore Case No CU-MC-CTL. The gravamen of is to expunge regulatory information imposed against Mr. Flowers by FINRA pursuant to its regulatory U.S.C. 78a et seq., from his a database of broker information maintained by FINRA and described in more detail below. See Complaint at 8,. II. G R O UNDS F O R R E M O V A L F E D E R A L Q U EST I O N. FINRA is a self-regulatory organization registered with the SEC as a national securities association pursuant to the Maloney Act amendments to the Exchange Act, U.S.C. 78a, et seq. Pursuant to authority vested by the Exchange Act, FINRA has the power to discipline its members. U.S.C. 78o-(b) and (h). See also, e.g., First Jersey Securities, Inc. v. Bergen, 0 F.d 0 (d Cir. 7), cert denied U.S. 7, 0 S. Ct. 0 (80); D.L. Cromwell Inv., Inc. v. NASD Regulation, Inc., 7 F.d, (d Cir. 00), cert denied, 7 U.S. 8 (00). The FINRA Code of Procedure, which has been approved by the SEC, governs FINRA disciplinary proceedings against securities firms and their representatives. See Kurz v. Fidelity Management & Research Co., F.d, S NOTICE OF REMOVAL OF ACTION

3 CCCaaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Gibson, Dunn & Crutcher LLP (7th Cir. 00). The Exchange Act also provides that the exclusive judicial remedy for complaints arising from FINRA disciplinary proceedings lies in the United States Court of Appeals following appeal to the Securities Exchange Commission. U.S.C. 78y; see also, e.g., First Jersey Securities, 0 F.d at - of exhaustion of administrative remedies applies with equal force to the disciplinary. The Exchange Act requires FINRA to report registration information about current and former securities representatives, which includes information relating to disciplinary record. See U.S.C. 78o-(i)()(A)-(B) (requiring that registration i. other information required by law, or exchange or association rule[ 78o-(i)(). record are available to members of the public without subpoena through a toll-free telephone number and through the FINRA BrokerCheck program which is available over the internet at U.S.C. 78o- association shall... establish and maintain a toll-free telephone listing, and a readily accessible electronic or other process, to receive and promptly respond to inquiries regarding.... Unlike the plaintiffs in In re Lickess, 0 WL 7 (N.D. Cal. June, 0) and Doe v. Financial Industry Regulatory Authority, Inc. 0 WL 070 (C.D. Cal. Nov., 0), Mr. Flowers seeks to remove regulatory information not customer complaints. There is no mechanism to expunge disciplinary actions from CRD. Instead the Federal rules require that information be maintained. See U.S.C. 78o-(i)(). Thus, in the State Court Action, Mr. Flowers seeks a dispensation from this federal mandate. S NOTICE OF REMOVAL OF ACTION

4 CCCaaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Gibson, Dunn & Crutcher LLP. This action may be removed to this Court by FINRA pursuant to 8 U.S.C. because this is a civil action over which this Court has federal question jurisdiction pursuant to the provisions of 8 U.S.C.. Section 7 of the Exchange Act, U.S.C. 78aa, vests in federal courts exclusive jurisdiction for suits in equity and actions at law brought to enforce any liability or duty created by [the Exchange] Act or the the Exchange Act is within the exclusive jurisdiction of the federal courts. 7. As set forth above, all of within the meaning of 8 U.S.C., and removal is thus proper under 8 U.S.C.. III. V E NU E 8. Mr. Flowers filed his Complaint in the Superior Court of the State of California for the County of San Diego, which is within this judicial district. See 8 U.S.C. 8(c)(). This Court is therefore the proper venue for removal under 8 U.S.C. (a), (a). I V. T I M E L IN ESS. FINRA files this Notice within thirty (0) days after its receipt of the Petition in accordance with 8 U.S.C. (b). FINRA was served with the Summons and Complaint herein on September, 0. V. A T T A C H M E N T O F ST A T E C O UR T PL E A DIN GS. FINRA has complied with 8 U.S.C. (a) by attaching all process, pleadings, and orders received in the State Court Action as Exhibits A through D in the Dettmer Declaration. V I. N O T I C E O F R E M O V A L G I V E N T O T H E ST A T E C O UR T. As required by 8 U.S.C. (d), FINRA will promptly give written notice of this Notice of Removal to Plaintiffs and will file a copy of the notice with the Clerk of the Superior Court for the County of San Diego. S NOTICE OF REMOVAL OF ACTION

5 CCCaaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff V II. C O N C L USI O N. For the foregoing reasons, FINRA respectfully states that this action, previously pending in the Superior Court of the State of California for the County of San Diego, is properly removed to this Court, and FINRA respectfully requests that this Court proceed as if this case had been originally filed in this Court DATED: October, 0 GIBSON, DUNN & CRUTCHER LLP By: /s/ Ethan D. Dettmer Ethan D. Dettmer Attorney for Defendant FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. Gibson, Dunn & Crutcher LLP S NOTICE OF REMOVAL OF ACTION

6 JS cre~. ~z~,z~ CIVIL COVER SHEET The JS civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 7, ~s required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEEINSTRUCTlONSONNEXTPAGEOFTHISFORM) I. (a) PLAINTIFFS Troy Flowers!aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff DEFENDANTS 'CV0 DMS JMA Financial Industry Regulatory Authority, Inc., DOES through 0 (b) County of Residence of First Listed Plaintiff San Diego County (CXCL PT IN U S P/.AINTIFF CASTS) ~C~ AttOCneys (Firry Name, Address, and T elephone Number) Michael T. McColloch, McColloch Law Firm, Second St. Suite, Encinitas, CA 0, (70) -0 County of Residence of First Listed Defendant Washington D.C. (IN U. S PLAINTIFF CASL S ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. Attorneys pfknmvn) Ethan D. Dettmer, Gibson Dunn & Crutcher LLP, Mission Street, Suite 000, San Francisco, CA, () -800 IL BASIS OF JURISDICTION (Place an "x in One sox only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an 'x" in one sox~or Plainri>j (For Diversity Cases Only) and One Box for Defindan~) O U.S. Govenunent ~ Federal Question PTF DEF PTF DEF Plaintiff (U. S. Government Not a Party) Citizen of This State O O Incorporated or Principal Place O O of Business In This State O U.S. Govenunent O Diversity Citizen of P.noNier State O O Incorporated and Principal Place O O Defendant (Indicate Citizenship of Parties iii Item III) of Business In Another State Citizen or Subject of a O O Foreign Nation O O Forei n Coun iv. NATTIRE OF STJiT rnloce an x" in nne Rox nnly) ( UA7 R~A(~~f IUltl~ 'i7~.~ r. ~l.' ILAAF,,.;ICI 07[~~KSI,A7l. O Insurazice PERSONAL INJURY PERSONAL INJURY O Drug Related Seizure O Appeal 8 USC 8 O 7 False Claims Act O Mazine O Airplane O G Personal Injury - of Property l USC 88 O Withdrawal O 00 State Reapportionment O Miller Act O Airplane Product Product Liability O 0 Other 8 USC O lv~titrust O 0 Negotiable Instrument Liability D 7 Heatth Care/ O 0 Ba~ilcs and Banking O Recovery of Oveipaymeut O 0 Assault, Libel & Pha~maceurical _ PR (IP 'lt Tl' R I ~;'f O 0 Convneree & Enforcement of Judgment ~ Slander Personal Injury O 80 Copyrights O 0 Deportation O Medicaz'e Act O 0 Federal Employers' Product Liability O 80 Patent O 70 Racketeer Influenced and D Recovery of Defaulted Liability O 8 Asbestos Personal O 80 Trademark Corrupt Organizations Student Loans 0 Marine Injury Product O 80 Consumer Credit (Excludes Veterans) 0 Marine Product Liability L~~)R ti[(i~~i.sb.('i:kil'l 00Cable/SatTV O Recovery of Overpayment Liability PERSONAL PROPERTY O 7 Fair Labor Standazds O 8 HIA (f~ ~ 80 Securities/Cotmnodities/ of Veteran's Benefits O 0 Motor Vehicle O 70 Other Fraud Ac[ O 8G Black Lung () Exchange O 0 Stockholders' Suits O Motor Vehicle O 7 Truth in Lending O 70 Labor/Management O 8 DIWC/DIWW (0(8)) O 80 OtOer Statutory Actions O 0 Otlier Conhact Product Liability O 80 Oflier Personal Relations O 8 SSID Tile XVI O 8 Agriwltural Acts O Contract Product LiaUility O 0 Other Personal Property Damage O 70 Railway LaUor Act O 8 RSI (0(8)) O 8 Environmental Matters D Francl»se Injury D 8 Property Damage O 7 Family and Medical O 8 Freedom of Information O Personal Injury - Product Liability Leave Act Act Medical Mal ractice O 70 Other Labor Litigation O 8 Arbitration RL~i pro,pe~t clvn IiIGT{Iti'!'tISONERP~;~IT70N_. 07EmployeeRetirement I'I~FIt: 7SStllti O 8 Administrative Procedure O La~~d Coudeiru~atiou O 0 Other Civil Rights Habeas Corpus: Income Security Act O 870 Taxes (U.S. Plaintiff Act/Review or Appeal of O 0 Foreclosure O Voting O Alien Detainee or Defendant) Agency Decision O 0 Rent Lease & Ejecfi~ent O Employment O Motions to Vacate O 87 IRS Third Party O 0 Constitutionality of O 0 Torts to Land O Housing/ Sentence USC 70 State Statutes O Tort Product Liability Acconmiodations O 0 General O 0 All Other Real Property O Amer. w/disabilities- O Death Penalty '~ ~Gi \ 'll)~ ' Employment Other: O Naturalization Application O Amer. w/disabilities - O 0 Mandamus &Other O Other Inv~ilgra[ion Other O 0 Civil Rights Actions O 8 Education O Prison Condition O 0 Civil Detainee - Conditions of Confinement V. ORIGIN (Place an 'X" in One Boz Only) O Original 8( Removed from Proceeding State Court O Remanded from Appellate Court O Reinstated or Reopened O Transferred from Another District O Multidistrict Litigation (specify) Cite the U.S. Civil Statute under which you are filing (Do not cite ~~rrcdictinna[,ctatutes unless diversity): U.S.C. section 78aa et se.; 8 U.S.C. sections ' and VI. CAUSE OF ACTION Brief description of cause: Suit to expunge regulatory information imposed by FINRA pursuant to its regulatory authority under Exchange Act VII. REQUESTED IN Q CHECK IF THIS IS A CLASS ACTION DEMAND $ CHECK YES only if demanded in complaint: COMPLAINT: UNDER RULE, F.R.Cv.P. JURY DEMAND: O Yes ~ No VIII. RELATED CASES) (See ins~ructionsj: IF ANY JUDGE DOCKET NUMBER DATE SIGNATURE OF ATTffj~~NEY OF~ ~,?p ~a //0 ;'=.--~`li?o,~v~- //. //.'y~/~~il~,g~~ RECEIPT # AMOUNT APPLYING IFP 7UDGE MAG..TUDGE

7 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff GIBSON, DUNN & CRUTCHER LLP ETHAN D. DETTMER, SBN 0 EDettmer@gibsondunn.com Mission Street, Suite 000 San Francisco, California - Telephone:..800 Facsimile:..80 Attorneys for Financial Industry Regulatory Authority, Inc. (FINRA) 7 8 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA TROY FLOWERS, an individual, v. Plaintiff, FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC., a private company; DOES through 0, inclusive, Defendants. CASE NO. 'CV0 DMS JMA D E C L A R A T I O N O F E T H A N D. D E T T M E R IN SUPPO R T O F N O T I C E O F R E M O V A L O F A C T I O N B Y F IN A N C I A L INDUST R Y R E G U L A T O R Y A U T H O RI T Y, IN C. [Removal from the Superior Court of California, County of San Diego, Case No CU-MC-CTL] Gibson, Dunn & Crutcher LLP DECLARATION OF ETHAN D. DETTMER IN SUPPORT OF NOTICE OF REMOVAL OF ACTION BY FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.

8 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Gibson, Dunn & Crutcher LLP I, Ethan D. Dettmer, declare as follows:. I am an attorney admitted to practice law before all courts of the State of California and in the United States District Court for the Southern District of California. I am a partner in the law firm of Gibson, Dunn & Crutcher LLP, and I am one of the attorneys responsible for the representation of Defendant Financial Industry Regulatory Authority, Inc. in this matter. Unless otherwise stated, the following facts are within my personal knowledge and, if called and sworn as a witness, I could and would testify competently thereto.. Attached hereto as Exhibit A is a true and correct copy of the Complaint in Troy Flowers v. Financial Industry Regulatory Authority, Inc., Case No CU-MC-CTL filed on September, 0 in the Superior Court of California, County of San Diego.. Attached hereto as Exhibit B is a true and correct copy of the Summons in Troy Flowers v. Financial Industry Regulatory Authority, Inc., Case No CU-MC-CTL filed on September, 0 in the Superior Court of California, County of San Diego.. Attached hereto as Exhibit C is a true and correct copy of the Civil Case Cover Sheet in Troy Flowers v. Financial Industry Regulatory Authority, Inc., Case No CU-MC-CTL filed on September, 0 in the Superior Court of California, County of San Diego... Attached hereto as Exhibit D is a true and correct copy of the Notice of Case Assignment and Case Management Conference in Troy Flowers v. Financial Industry Regulatory Authority, Inc., Case No CU-MC- CTL, setting a Civil Case Management Conference on February, 0 in the Superior Court of California, County of San Diego.. In accordance with 8 U.S.C. (a), Exhibits A through D include DECLARATION OF ETHAN D. DETTMER IN SUPPORT OF NOTICE OF REMOVAL OF ACTION BY FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.

9 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff I declare under the penalty of perjury under the laws of the State of California and the United States of America that the foregoing is true and correct and that I executed this Declaration on October, 0, at San Francisco, California. 7 /s/ Ethan D. Dettmer Ethan D. Dettmer Gibson, Dunn & Crutcher LLP DECLARATION OF ETHAN D. DETTMER IN SUPPORT OF NOTICE OF REMOVAL OF ACTION BY FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.

10 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Exhibit A

11 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff ~ I L E D Olork ol tke SapeAor tiemt 7 8 ~ ' I 8 I 0 I ' I I ~ ' 7 8 Michael T. McColloch (SNB 7) SEP 0 0 McCOLLOCH LAW FIRM By: N. ADAMS, Deputy Second St., Suite Encinitas, CA 0 Telephone: (70) -0 Facsimile: (70) mikeamoonlightlaw.com Attorneys for Troy Flowers TROY FLOWERS, an individual, vs. SUPERIOR COURT OF THE STATE OF CALIFORNIA Plaintiff, FINANCIAL INDUSTRY REGULATORY AUTHORITY, a private company; DOES through 0, inclusive, Defendants. COUNTY OF SAN DIEGO ) Case No CU-MC-CTL ) COMPLAINT FOR EXPUNGEMENT IN ) EQUITY ) ) ) ) ) ) ) ) ) ;, y ~.:i i~'. f_: Plaintiff TROY FLOWERS ("Plaintiffl') complains of Defendant FINANCIAL INDUSTRY REGULATORY AUTHORITY, also known as FINRA, ("Defendant") and for a cause of action alleges the following: in California. JURISDICTION AND VENUE. Defendant is a Delaware corporation, authorized to do a.nd doing business. Venue is proper in this county in accordance with Section (a) of the California Code of Civil Procedure because Deferidant does business in this county and the injuries alleged herein occurred in this county. COMPLAINT FOR EXPUNGEMENT IN EQUITY

12 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff PARTIES. Plaintiff is an individual, residing in the City of Sola.na Beach, County of San Diego and State of California.. Plaintiff is informed and believes and thereon alleges that Defendant is a privately owned corporation registered with the Securities Exchange Commission as a! self-regulatory organization that provides certain regulatory services in the fmancial 7 services industry. 8. The names and capacities of Defendants DOES -0, inclusive, are unknown to Plaintiff, who therefore sues said defendants by such fictitious names. Plaintiff will amend this complaint to allege the true names and capacities of said defendants when ascertained. Plaintiff is informed and believes and thereon alleges that each fictitiously named defendant is legally responsible to Plaintiff for the damages alleged herein.. Plaintiff is informed and believes and thereon alleges that at all material times, each defendant was the agent and employee of all other defendants, acting within the course and scope of such agency and employment. GENERAL ALLEGATIONS 8 7. On July, 000, Plaintiff submitted to Defendant a Form U Uniform Termination Notice for Securities Industry Registration, which served as his resignation 0 from being a licensed broker. 8. Defendant's database reports that on August, 000, the state of Ohio I denied Plaintiff a securities salesman license, but Plaintiff did not apply for an Ohio state license. The state of Ohio was merely acknowledging that Plaintiff submitted his Form U, and by virtue of this resignation, he would no longer be eligible for licensing as a broker within that state, but Defendant's report misrepresents this as a blemish on Plaintiff's record. 7. Defenda.nt's database also reports that on October, 000, Plaintiff was 8 I I suspended from associating with Defendant's members because of an investigation COMPLAINT FOR EXPUNGEMENT IN EQUITY

13 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Defendant was conducting on a firm in which Plaintiff had previously worked. Defendant imposed a fine of $,0000 on Plaintiff, which would have removed this reporting, but Plaintiff had no desire to incur such an expense in defending against actions by Defendant that arose after his resignation as a licensed broker, particularly since he also had no desire to ever again be a member of Defendant's organization.. Defendant's database further reports that on December, 00, Plaintiff 7 was not suspended, but was barred from associating with Defendant's members because 8 Plaintiff did not cooperate in the investigation against the former firm in which Plaintiff worked. However, Plaintiff's initial reluctance to participate in a deposition conducted by the Defendant was on advice from legal counsel to exercise his Fifth Amendment rights. This counsel was given because Plaintiff was already in the process of defending against state criminal charges related to the investigation being conducted on the former firm in which Plaintiff worked.. Plaintiff ultimately participated in a deposition conducted by Defendant, but Defendant disregarded Plaintiff's previously asserted rights guaranteed under the Fifth Amendment by stating that this later cooperation was not a timely participation, and thus, represents this as an additional blemish on Plaintiff s record. 8. Plaintiff now seeks expungement of the above representations from his record under Defendant's Rule 080(a), which provides that a court of "competent 0 I jurisdiction" may expunge information disclosed in Defendant's database.. Defendant's rule is purely procedural and does not provide a substantive test for expungement, and as such, California courts have held that Defendant's Rule 080(a) essentially recognizes a right of inembers and associated persons to seek expungement, and may do so by petitioning under the court's inherent and general powers in equity. FIRST CLAIM FOR RELIEF AGAINST ALL DEFENDANTS 7 [Pursuant to the Court's inherent equitable powers to wei h t~he equities favoring 8 exnungement against the detriment to the public] COMPLAINT FOR EXPUNGEMENT IN EQUITY

14 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff. Plaintiff re-alleges and incorporates by reference, as though fully set forth in this cause of action, each and every allegation contained in Paragraphs through, inclusive, of this Complaint.. California courts have recognized that Defendant's Rule 080(a) essentially recognizes a right of inembers and associated persons to seek expungement of their record as reported in Defendant's database. 7. California case law has held that a Plaintiff may call upon the court's 8 inherent powers to weigh the equities favoring expungement against the detriment of the public should expungement be granted.. The representations of Defendant about Plaintiff appearing in Defendant's database are false, inaccurate, misleading. 8. Plaintiff does not wish to ever again be a member of Defendant's organization, but he does wish to associate with Defendant's members.. The way in which Defendant represents Plaintiff s record makes it such that Plaintiff cannot associate with members of Defendant's organization. 0. Plaintiff s inability to associate with Defendant's members has harmed Plaintiff in that he has been not allowed to open private brokerage accounts to conduct 8 personal investing for his own future.. Plaintiff's record, as it is represented on Defendant's database, is harmful to 0 Plaintiff s reputation because it is available through simple Internet searches.. Plaintiff s record, as it is represented on Defendant's database, is harmful to Plaintiff because it inhibits his ability to seek future employment.. The risk of harm to the public in granting the expungement of Plaintiff s record from Defendant's database is minimal because the relief sought by the Plaintiff is not public in nature. Through this relief, Plaintiff has no desire to restore his broker's license, or to become a member of Defendant's organization; he merely desires to freely 7 invest in his own retirement, have no hindrances in employment searches, and to have his 8 reputation saved from further harm. COMPLAINT FOR EXPUNGEMENT IN EQUITY

15 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff WHEREFORE, Plaintiff prays for judgment as follows: l. For an order of expunging Plaintiffls record, as to the representations above, from Defendant's database.. For such other and further relief as the court deems proper. DATED: August~, 0 McCOLLOCH LAW FIRM 7 By: MICHAEL T. McCOLLOCH 8 Attorneys for Plaintiff COMPLAINT FOR EXPUNGEMENT M EQUITY

16 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Exhibit B

17 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff NOTICE TO DEFENDANT: SUMMONS (CITACION JUDIC/AL) VISO~I~L D~MANDADO): (~ tnancial In ustry Regulatory Authority YOU ARE BEING SUED BY PLAINTIFF: (~LO ESTA DEMANDANDO EL DEMANDANTE): l roy Flowers FOR COURT USE ONLY (SOLO PARA USO DE LA CORTE) =, :~. I ~L E FUrk ot iilu Suoalor Eomt D SEP 0 0 By: N. ADAMS, Deputy You have been sued. The court may decide against you your being heard unless you respond within 0 days. Read the information below. You have 0 CALENDAR DAYS after this summons and legal papers are served on you to fde a written response at this court and have a copy served on the plaintiff. A letter or phone call will not protect you. Your written response must be in proper legal form if you want the court to hear your case. There may be a court form that you can use for your response. You can find these court forms and more information at the California Courts Online Self-Help Center ( your county law library, or the courthouse nearest you. If you cannot pay the fi[ing fee, ask the court clerk for a fee waiver form. If you do not file your response on time, you may lose the case by default, and your wages, money, and property may be taken without further warning from the court. There are other legal requirements. You may want to call an attorney right away. If you do not know an attorney, you may want to call an attorney referral service. If you cannot afford an aftorney, you may be eligible for free Iegal services from a nonprofit legal services program. You can locate these nonprofit groups at the California Legal Services Web site ( the California Courts Online Self-Help Center ( or by contacting your local court or county bar association. NOTE: The court has a statutory lien for waived fees and costs on any settlement or arbitration award of $,000 or more in a civil case. The court's lien must be paid before the court will dismiss the case. A VlSOt Lo han demandado. Si no responde dentro de 0 dias, la corte puede decidir en su contra sin escuchar su versin. Lea la informacin a continuacin. Tiene 0 DIAS DE CALENDARIO despues de que le entreguen esta citacin y papeles legales para presentar una respuesta por escrito en esta corte y hacer que se entregue una copia al demandante. Una carta o una Ilamada telefnica no lo protegen. Su respuesta por escrito tiene que estar en formato legal correcto si desea que procesen su caso en la corte. Es posible que haya un formuiario que usted pueda usar para su respuesta. Puede encontrar estos formularios de la corte y mss infnrnmacin en e/ Centro de Ayuda de las Cortes de California ( en la biblioteca de leyes de su condado o en /a corte que le quede ms cerca. Si no puede pagar la cuota de presentacin, pida al secretario de la corte que le dd un formulario de exencin de pago de cuotas. Si no presenta su respuesta a tiempo, puede perder el caso por incumplimiento y la corte le podr8 quitar su sueldo, dinero y bienes sin ms advertencia. Hay otros requisitos legales. Es recomendable que llame a un abogado inmediatamente. Si no conoce a un abogado, puede Ilamar a un servicio de remisin a abogados. Si no puede pagar a un abogado, es posible que cumpla con los requisitos para obtener servicios legales gratuitos de un programa de servicios legales sin fines de lucro. Puede encontrar estos grupos sin ffnes de lucro en el sitio web de California Legal Se~vices, ( en el Centro de Ayuda de las Cortes de Califomia, ( o poniendose en contacto con la corte o el colegio de abogados locales. AVISO: Por ley, la corte tiene derecho a reclamar las cuotas y los costos exentos por imponer un gravamen sobre cualquier recuperacfn de $,000 mas de valor recibida mediante un acuerdo o una concesin de arbitraje en un caso de derecho civil. Tiene que pagar el gravamen de la corte antes de que la corte pueda desechar el caso. The name and address of the court is: (fift rety~ireccd'n de la corte es): Hall of Justice es roa way San Diego, CA CASE NUMBER (Numero del Caso): CU-MC-CTL The name, address, and telephone number of plaintiffs attorney, or plaintiff without an attomey, is: (EI nombre, la direccidn y el numero de telefono del abo ado del demandante, o del demandante que no tiene abogado, es): Michael T. McColloch, Second St., Suite ~, Encinitas, CA 0, (70) -0 ~ DATE: Clerk, by Deputy (Fecha) SEP 0 0 (Secretario) N. Adams (Adjunto) (For prnof of service of this summons, use Proof of Service of Summons (fonn POS-0).) (Para pnieba de entrega de esta citatin use el formulario Proof of Service of Summons, (POS-0)). NOTICE TO THE PERSON SERVED: You are served [se'l] ~. 0 as an individual defendant.. as the person sued under the fictitious name of (specify): g_ l on behalf of (specify): Financial Industry Regulatory Authority Form Adopted for Mandatory Use Judicial Council of Califomia SUM-0 [Rev. July, 00] under: 7 CCP. (corporation) 0 CCP.0 (minor) 0 CCP.0 (defunct corporation) CCP.70 (conservatee) ~ CCP.0 (association or partnership) CCP.0 (authorized person) 0 other (specify): = by personal delivery on (date): Page of SUMMONS Code of Civil Procedure, 8

18 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Exhibit C

19 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff ATTOtNEY OR PARTY WITHOUT ATTORNEY (Name, State aar number, and address): FOR COURT USE ONLY Michael T. MCColtoch (SBN 7) CM-0 Second St., Suite» L E Encinitas, CA` ':. ' ctsrk or tne aupmor cooft D ( 0) -0 (70) 0-00 TELEPHONE NO.: ATTORNEY FOR (Name): SUPERIOR COURT OF C I~j IA, UNTY F ~~"~est~roac~way STREETADDRESS: MAILING ADDRESS: CnYANDZIPCODE: BRANCH NAME: San Dieg O, CA Hall of Justice FAX NO.: CASE NAME: Troy Flowers v. Financial Industry Regulatory Authority ~ C Cp O~ ~O~C JCf J By: N. ADAMS, Deputy CIVIL CASE COVER SHEET Complex Case Designation CASE NUMBER: 0 Unlimited 0 Limited 0 Counter C] Joinder C - : ~ (Amount (Amount JUDGE: demanded demanded is Filed with first appearance by defendant exceeds $,000) $,000 or less) (Cal. Rules of Court, rule.0) DEPT: ~rerns 7-0 DetUw musr De corrlperea (See rrlsrrllcllons ori rjcac7e cl. Check one box below for the-case type that best describes this case: Auto Tort -- Contract Provisionally Complex Civil Litigation ~ Auto () 0 Breach of contract/warranty (0) (Cal. Rules of Court, rules.00-.0) Q Uninsured motorist () 0 Rule.70 collections (0) ~ Antitrust/Trade regulation (0) Other PI/PD/WD (Personal Injury/Property Other collections (0) DamagelWrongful Death) Tort Insurance coverage (8) 0 Asbestos (0) Other contract (7) 0 Product liability () Real Property 0 Medical malpractice () 0 Eminent domain/inverse ~ Other PI/PD/WD () condemnation () Non-PI/PD/NID (Other) Tort ~ Wrongful eviction () 0 Business tort/unfair business practice (07) ~ Other real property () ~ Civil rights (08) ~ Defamation () ~ Fraud () ~ Intellectual property () 0 Professional negligence () Unlawful Detainer 0 Commercial () 0 Residential () ~ Drugs (8) Judicial Review ~ Other non-pi/pdmid tort () ~ Asset forfeiture (0) Em loyment ~ Petition re: arbitration award () [~ Wrongful termination () 0 Writ of mandate (0) [7 Other empioyment () n Other iudicial review () Miscellaneous Civil Petition 0 Partnership and corporate governance () 0 Other petition (not specified above) (). This case I is L~/ I is not comdlex under rule.00 of the California Rules of Court. If the case is comdlex, mark the factors requiring exceptional judicial management: a. 0 Large number of separately represented parties d. 0 Large number of witnesses b. Extensive motion practice raising difficult or novel e. 0 Coordination with related actions pending in one or more courts issues that will be time-consuming to resolve in other counties, states, or countries, or in a federal court c. Substantial amount of documentary evidence f. 0 Substantial postjudgment judicial supervision. Remedies sought (check all that apply): a.= monetary b. nonmonetary; declaratory or injunctive relief C. 0 punitive. Number of causes of action (specify): /. This case [] is ~] is not a ciass action suit.. If there are any known related cases, file and serve a notice of related case. (You may use form CM-0.) Date: 08/7/, Michael T. McColloch (TYPE OR PRINT NAME) ~ Construction defect () 0 Mass tort (0) ~ Securities litigation (8) ~ Environmental/Toxic tort (0) 0 Insurance coverage claims arising from the above listed provisionally complex case types (), Enforcement of Judgment = Enforcement of judgment (0) Miscellaneous Civil Complaint ~ RICO (7) 0 Other complaint (not specified above) () (SIGNATURE OF PARTY OR ATTORNEY FOR PARTY) Plaintiff must file this cover sheet with the first paper filed in the action or proceeding (except small daims cases or cases flled under the Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule.0.) Failure to file may result in sanctions. ~~ File this cover shee~ in at:dltion to any cover sheet required by local court rule. If this case is complex u~nder rule.00 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all other parties to the action or proceeding. Unless this is a collections case under rule.70 or a complex case, this cover sheet will be used for statistical purposes onl~r. ape of Fonn Adopted for Mandatory Use Cal. Rules of Court, rules.0,.0,.00-.0,.7q CIVIL CASE COVER SHEET Judicial Council of Carrfomia Cal. Standards of Judicial Adminislration, std.. CM-0 [Rev. July, 007

20 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Exhibit D

21 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN DIEGO STREET ADDRESS: 0 W Broadway MAILING ADDRESS: CITY AND ZIP CODE: 0 W Broadway San Diego, CA -87 BRANCH NAME: Central TELEPHONE NUMBER: () 0-70 PLAINTIFF(S) / PETITIONER(S): DEFENDANT(S) / RESPONDENT(S): Troy Flowers Financial Industry Regulatory Authority FLOWERS VS. FINANCIAL INDUSTRY REGULATORY AUTHORITY NOTICE OF CASE ASSIGNMENT and CASE MANAGEMENT CONFERENCE CASE NUMBER: CU-MC-CTL CASE ASSIGNMENT Judge: Ronald L. Styn Department: C- COMPLAINT/PETITION FILED: 0/0/0 TYPE OF HEARING SCHEDULED DATE TIME DEPT JUDGE Civil Case Management Conference 0//0 :00 am C- Ronald L. Styn A case management statement must be completed by counsel for all parties or self-represented litigants and timely filed with the court at least days prior to the initial case management conference. (San Diego Local Rules, Division II, CRC Rule.7). All counsel of record or parties in pro per shall appear at the Case Management Conference, be familiar with the case, and be fully prepared to participate effectively in the hearing, including discussions of ADR* options. IT IS THE DUTY OF EACH PLAINTIFF (AND CROSS-COMPLAINANT) TO SERVE A COPY OF THIS NOTICE WITH THE COMPLAINT (AND CROSS-COMPLAINT), THE ALTERNATIVE DISPUTE RESOLUTION (ADR) INFORMATION FORM (SDSC FORM #CIV-70), A STIPULATION TO USE ALTERNATIVE DISPUTE RESOLUTION (ADR) (SDSC FORM #CIV-), AND OTHER DOCUMENTS AS SET OUT IN SDSC LOCAL RULE... ALL COUNSEL WILL BE EXPECTED TO BE FAMILIAR WITH SUPERIOR COURT RULES WHICH HAVE BEEN PUBLISHED AS DIVISION II, AND WILL BE STRICTLY ENFORCED. TIME STANDARDS: The following timeframes apply to general civil cases and must be adhered to unless you have requested and been granted an extension of time. General civil cases consist of all civil cases except: small claims proceedings, civil petitions, unlawful detainer proceedings, probate, guardianship, conservatorship, juvenile, parking citation appeals, and family law proceedings. COMPLAINTS: Complaints and all other documents listed in SDSC Local Rule.. must be served on all named defendants. DEFENDANT S APPEARANCE: Defendant must generally appear within 0 days of service of the complaint. (Plaintiff may stipulate to no more than day extension which must be in writing and filed with the Court.) (SDSC Local Rule..) JURY FEES: In order to preserve the right to a jury trial, one party for each side demanding a jury trial shall pay an advance jury fee in the amount of one hundred fifty dollars ($) on or before the date scheduled for the initial case management conference in the action. *ALTERNATIVE DISPUTE RESOLUTION (ADR): THE COURT ENCOURAGES YOU TO CONSIDER UTILIZING VARIOUS ALTERNATIVES TO TRIAL, INCLUDING MEDIATION AND ARBITRATION, PRIOR TO THE CASE MANAGEMENT CONFERENCE. PARTIES MAY FILE THE ATTACHED STIPULATION TO USE ALTERNATIVE DISPUTE RESOLUTION (SDSC FORM #CIV-). SDSC CIV-7 (Rev. 08-) NOTICE OF CASE ASSIGNMENT Page:

22 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Superior Court of California County of San Diego NOTICE OF ELIGIBILITY TO efile AND ASSIGNMENT TO IMAGING DEPARTMENT This case is eligible for efiling. Should you prefer to electronically file documents, refer to General Order 0 at for rules and procedures or contact the Court's efiling vendor at for information. This case has been assigned to an Imaging Department and original documents attached to pleadings filed with the court will be imaged and destroyed. Original documents should not be filed with pleadings. If necessary, they should be lodged with the court under California Rules of Court, rule.(b). On August, 0 the San Diego Superior Court began the Electronic Filing and Imaging Pilot Program ( Program ). As of August, 0 in all new cases assigned to an Imaging Department all filings will be imaged electronically and the electronic version of the document will be the official court file. The official court file will be electronic and accessible at one of the kiosks located in the Civil Business Office and on the Internet through the court s website. You should be aware that the electronic copy of the filed document(s) will be the official court record pursuant to Government Code section 8. The paper filing will be imaged and held for 0 days. After that time it will be destroyed and recycled. Thus, you should not attach any original documents to pleadings filed with the San Diego Superior Court. Original documents filed with the court will be imaged and destroyed except those documents specified in California Rules of Court, rule.80. Any original documents necessary for a motion hearing or trial shall be lodged in advance of the hearing pursuant to California Rules of Court, rule.(b). It is the duty of each plaintiff, cross-complainant or petitioner to serve a copy of this notice with the complaint, cross-complaint or petition on all parties in the action. On all pleadings filed after the initial case originating filing, all parties must, to the extent it is feasible to do so, place the words IMAGED FILE in all caps immediately under the title of the pleading on all subsequent pleadings filed in the action. Please refer to the General Order - Imaging located on the San Diego Superior Court website at: Page:

23 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff GIBSON, DUNN & CRUTCHER LLP ETHAN D. DETTMER, SBN 0 EDettmer@gibsondunn.com Mission Street, Suite 000 San Francisco, California - Telephone:..800 Facsimile:..80 Attorneys for Financial Industry Regulatory Authority, Inc. (FINRA) UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA TROY FLOWERS, an individual, v. Plaintiff, FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC., a private company; DOES through 0, inclusive, Defendants. CASE NO. 'CV0 DMS JMA DECLARATION OF SERVICE Gibson, Dunn & Crutcher LLP DECLARATION OF SERVICE

24 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff I, Robin McBain, declare as follows: DECLARATION OF SERVICE I am employed in the County of San Francisco, State of California; I am over the age of eighteen years and am not a party to this action; my business address is Mission Street, San Francisco, California,, in said County and State. On October, 0, I served the within:. NOTICE OF REMOVAL OF ACTION BY DEFENDANT FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.. DECLARATION OF ETHAN DETTMER IN SUPPORT THEREOF;. DEFENDANT FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. S CERTIFICATION OF INTERESTED ENTITIES;. CIVIL COVER SHEET. to all named counsel of record as follows: Michael McColloch McColloch Law Firm Second St., Suite Encinitas, CA Telephone: (70) -0 Facsimile: (70) mike@moonlightlaw.com Attorneys for Plaintiff Troy Flowers BY OVERNIGHT MAIL: I placed a true copy in a sealed envelope addressed as indicated above, on the above-mentioned date. I am familiar with Gibson, Dunn & Crutcher's practice in its above-described San Francisco office for the collection and processing of correspondence for distributing by Federal Express, UPS, and/or U.S. Postal Service Overnight Mail; pursuant to that practice, envelopes placed for collection at designated locations during designated hours are deposited at the respective office that same day in the ordinary course of business. Gibson, Dunn & Crutcher LLP DECLARATION OF SERVICE

25 !aaassseee :::- - -cccvvv DDDMMMSSS- - -JJJMMMAAA DDDooocccuuummmeeennnttt FFFiiillleeeddd 00////// PPPaaagggeee ooofff Gibson, Dunn & Crutcher LLP I certify under penalty of perjury that the foregoing is true and correct, that the foregoing document(s) were printed on recycled paper, and that this Declaration of Service was executed by me on October, 0, at San Francisco, California. By: /s/ Robin McBain Robin McBain DECLARATION OF SERVICE