Employer Forcing Me To Check “yes” To A Felony Charge That Never Happened (u4 Disclosure Issue)

TL;DR: Employer is pressuring me to say “Yes” to a felony on my U4, even though the felony was never actually charged and they’re saying that if I don’t answer it that way, my registration will be delayed or denied, but checking “Yes” would create a false disclosure that could hurt me long term.

Hi everyone. I’m in the middle of a FINRA registration process and need advice from people familiar with U4 disclosures, compliance, or background checks. This is a bit long so apologies in advance.

What Happened:

Years ago, I was arrested and the police listed two offenses: • one felony offense • one misdemeanor offense

But when the case went to court, the prosecutor only filed the misdemeanor. The felony was never filed, never charged and the case was dismissed.

So the final result is: • No felony charge existed • No conviction • Dismissed misdemeanor • Misdemeanor is NOT reportable under FINRA (not fraud, theft, dishonesty, etc.)

The Problem: My employer’s compliance team is insisting I check “Yes” to this U4 question:

“Have you ever been charged with any felony?”

Their reasoning is that the arrest fingerprint report lists the felony arrest code, so they believe it should be disclosed even though: • the felony was never charged • the court docket shows no felony • the only charge filed was a misdemeanor • the case was dismissed • FINRA does not require disclosure of this misdemeanor

When I explained the difference between arrest vs charged, they responded:

“I understand that you believe this is inaccurate…”

Which feels like they’re dismissing the actual court record and treating the arrest code as a charge.

My Concern: Checking YES to a felony charge that never legally existed would mean: • I’d have to file a felony DRP • Describe a felony that never happened • Provide documents that don’t exist • Risk a false FINRA disclosure • Possibly trigger a review • Create a permanent record for something that never occurred

This could seriously harm my career.

My Questions 1. Can an employer force someone to disclose something that isn’t legally a charge? 2. If I check “Yes” incorrectly, does it protect the employer but hurt me? 3. Has anyone dealt with a compliance dept that misread arrest vs filed charge? 4. Should I get a FINRA compliance lawyer involved? 5. Can FINRA reject or question a false disclosure?

Any advice would really help. I want to make sure I’m doing everything correctly and not hurting my licensing before it even starts.

Thank you. Location: Ohio