Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_07-cv-03648/USCOURTS-cand-4_07-cv-03648-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 9:9 Motion to Confirm Arbitration Loan

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STIPULATION AND [PROPOSED] ORDER CONFIRMING SECTIONS 3B-3G OF THE ARBITRATION AWARD 

AND WITHDRAWING PETITIONER'S REQUEST FOR CONFIRMATION OF SECTION 3A OF THE AWARD; 

Case No. 4:07-CV-03648-CW 

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GIBSON, DUNN & CRUTCHER LLP 

ETHAN D. DETTMER, SBN 196046 

edettmer@gibsondunn.com 

REBECCA JUSTICE LAZARUS, SBN 227330 

rjustice@gibsondunn.com 

One Montgomery Street 

Suite 3100 

San Francisco, California 94104 

Telephone: (415) 393-8200 

Facsimile: (415) 986-5309 

Attorneys for Respondent 

FINANCIAL INDUSTRY REGULATORY 

AUTHORITY, INC. (“FINRA”) f/k/a NATIONAL 

ASSOCIATION OF SECURITIES DEALERS, 

INC. 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

DENISE R. REED, 

Petitioner, 

 v. 

NATIONAL ASSOCIATION OF SECURITIES 

DEALERS, INC., WHITE PACIFIC 

SECURITIES, INC. and ROY L. PANELLI, 

Respondents. 

CASE NO. 4:07-CV-03648-CW 

STIPULATION AND ORDER 

CONFIRMING SECTIONS 3B-3G OF THE 

ARBITRATION AWARD AND 

WITHDRAWING REQUEST FOR 

CONFIRMATION OF SECTION 3A OF 

THE ARBITRATION AWARD 

Case 4:07-cv-03648-CW Document 21 Filed 10/10/07 Page 1 of 5
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STIPULATION AND [PROPOSED] ORDER CONFIRMING SECTIONS 3B-3G OF THE ARBITRATION AWARD 

AND WITHDRAWING PETITIONER'S REQUEST FOR CONFIRMATION OF SECTION 3A OF THE AWARD; 

Case No. 4:07-CV-03648-CW 

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WHEREAS Respondent Financial Industry Regulatory Authority, Inc. (“FINRA”) f/k/a 

National Association of Securities Dealers, Inc.1 and Petitioner Denise Reed have agreed to stipulate 

to the following Proposed Order resolving the petition as it relates to Respondent FINRA and 

expungement of information regarding Petitioner Reed under the conditions set forth in this 

stipulation; and 

WHEREAS, FINRA’s Rule 2130 establishes procedures for FINRA members and associated 

persons, such as Petitioner Reed, to obtain expungement of customer dispute information from 

records FINRA maintains in the Central Registration Depository system (“CRD”), and these 

procedures include obtaining an arbitration award that grants expungement relief, and naming FINRA 

as a party to the court action in which petitioner seeks a court order confirming the arbitration 

award;2 and 

WHEREAS, FINRA’s involvement in this matter is limited to the expungement of 

information regarding Petitioner Reed from CRD; and FINRA consents to confirmation of sections 

3b-3g (on pages 4-5 of the Award) of the arbitration award entered on June 4, 2007 in the matter of 

arbitration between Denise R. Reed, Claimant v. White Pacific Securities, Inc. and Roy L. Panelli, 

Respondents, Case Number 04-03449 (the “Award”), which sections of the Award direct 

expungement as follows: 

1. FINRA will expunge from CRD all references to the following event described in the 

Award at sections 3b, 3c, 3d, and 3e: allegations that Petitioner Reed was the subject 

of a customer complaint because she obtained a loan from a customer then failed to 

repay the loan, allegations that while employed at White Pacific Securities, Inc. 

("White Pacific") Reed was the was the subject of NASD (now FINRA) regulatory 

 

1 On July 30, 2007, National Association of Securities Dealers, Inc. changed its name to Financial 

Industry Regulatory Authority, Inc. 

2 FINRA Notice to Members 04-16, available at 

http://finra.complinet.com/finra/display/display.html?rbid=1189&record_id=1159000477&elem

ent_id=1159000478&highlight=2130#r1159000477. 

Case 4:07-cv-03648-CW Document 21 Filed 10/10/07 Page 2 of 5
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STIPULATION AND [PROPOSED] ORDER CONFIRMING SECTIONS 3B-3G OF THE ARBITRATION AWARD 

AND WITHDRAWING PETITIONER'S REQUEST FOR CONFIRMATION OF SECTION 3A OF THE AWARD; 

Case No. 4:07-CV-03648-CW 

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action, and allegations that while employed at White Pacific. Reed was the subject of a 

criminal action or civil fraud in Nevada. This expungement includes: 

a. changing the "yes" response to "no" on question 14(b)(1) of the Form U4 

amendment filed by White Pacific on March 11, 2004 ("March 11 Form U4), 

and removal of the related Disclosure Review Page submitted with the March 

11 Form U4; 

b. changing "yes" responses to "no" on questions 7(a) – (e) of the Form U5 filed 

by White Pacific on March 12, 2004 ("March 12 Form U5"), and removal of 

related Disclosure Review Pages submitted with the March 12 Form U5; 

c. similar changes to Form U4 amendments subsequently submitted by Integral in 

response to the above-referenced disclosures on the March 11 Form U4 and the 

March 12 Form U5; 

d. changing the "yes" response to "no" on question 7(c) of the Form U5 

amendment filed by Quick & Reilly on August 22, 2003 ("August 22 Form 

U5") and removal of the related Disclosure Review Page submitted with the 

August 22 Form U5; and 

e. similar changes to all subsequent amendments to Reed's Form U4 submitted by 

White Pacific and Integral in response to the above-referenced disclosure on 

the August 22 Form U5. 

2. FINRA will expunge from CRD all references to the following event described in the 

Award at section 3f: erroneous reporting of a civil matter relating to attorney’s fees as 

a criminal fraud matter. This expungement includes removal of the information from 

the following forms: April 1, 2004 Form U4, March 11, 2004 Form U4. (FINRA is in 

the process of expunging this information.) 

3. FINRA will expunge from CRD all references to the following event described in the 

Award at section 3g: erroneous reporting that Petitioner Reed was terminated due to a 

criminal fraud matter. This expungement includes removal of the information from 

Case 4:07-cv-03648-CW Document 21 Filed 10/10/07 Page 3 of 5
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STIPULATION AND [PROPOSED] ORDER CONFIRMING SECTIONS 3B-3G OF THE ARBITRATION AWARD 

AND WITHDRAWING PETITIONER'S REQUEST FOR CONFIRMATION OF SECTION 3A OF THE AWARD; 

Case No. 4:07-CV-03648-CW 

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the following form: March 12, 2004 Form U5. (FINRA has already expunged this 

information.) 

WHEREAS Petitioner Reed agrees to withdraw its request for confirmation of section 3A of 

the Award, which pertains to the expungement of felony vandalism and aggravated assault charges 

filed against Petitioner Reed in the General Sessions Court for Knox County, Tennessee; 

WHEREAS, FINRA’s interest in this matter is limited to the expungement of information in 

Petitioner Reed’s records maintained in CRD, and FINRA, as the entity that also provides the 

arbitration forum, does not take a position on the sections of the Award that relate only to the dispute 

between Petitioner Reed and Respondents White Pacific Securities, Inc. and Roy L. Panelli; and 

therefore FINRA takes no position with regard to sections 1-2 and 4-7 (on pages 4-5 of the Award) 

of the Award ; 

NOW THEREFORE, the parties hereby STIPULATE AND AGREE, and request the Court to 

order and enter final judgment, as follows: 

The arbitration award entered on June 4, 2007 in the matter of arbitration between Denise R. 

Reed, Claimant v. White Pacific Securities, Inc. and Roy L. Panelli, Respondents, Case Number 04-

03449, concerning disclosures made by White Pacific Securities, Inc. and Roy L. Panelli to FINRA 

and concerning expungement of these disclosures, is confirmed as to sections 3b-3g of the Award, 

FINRA shall expunge the information described in paragraphs one through three above, and the 

Court shall enter a final judgment in this matter with respect to confirmation of sections 3b-3g of the 

award in accordance with this Order. 

// 

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Case 4:07-cv-03648-CW Document 21 Filed 10/10/07 Page 4 of 5
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STIPULATION AND [PROPOSED] ORDER CONFIRMING SECTIONS 3B-3G OF THE ARBITRATION AWARD 

AND WITHDRAWING PETITIONER'S REQUEST FOR CONFIRMATION OF SECTION 3A OF THE AWARD; 

Case No. 4:07-CV-03648-CW 

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FINRA shall bear its own costs but shall not bear the costs of any other party. 

DATED: October 5, 2007 

GIBSON, DUNN & CRUTCHER LLP 

By: s/ Rebecca Justice Lazarus 

Rebecca Justice Lazarus 

Attorneys for Respondent 

FINANCIAL INDUSTRY REGULATORY 

AUTHORITY, INC. (“FINRA”) f/k/a NATIONAL 

ASSOCIATION OF SECURITIES DEALERS, INC. 

DATED: October 5, 2007 

SHUSTAK & PARTNERS, P.C. 

By: s/ Jonah A. Toleno 

Jonah A. Toleno 

Attorneys for Petitioner 

DENISE R. REED 

IT IS SO ORDERED. 

 10/10/07 

Dated:_______________ _________________________________ 

 Honorable Claudia Wilken 

 United States District Court Judge 

Case 4:07-cv-03648-CW Document 21 Filed 10/10/07 Page 5 of 5