Adjudication and Decisions

When FINRA determines that violations of securities rules have occurred and formal disciplinary action is necessary, the Enforcement Department or Market Regulation Department files a complaint with the Office of Hearing Officers (OHO).

The Office arranges a three-person panel to hear the case. The panel is chaired by a hearing officer who is an employee of the Office of Hearing Officers. The Chief Hearing Officer appoints two industry panelists, drawn primarily from a pool of current and former securities industry members of FINRA's District Committees, as well as its Market Regulation Committee, former members of FINRA's National Adjudicatory Council (NAC) and former FINRA Governors.

At the hearing, the parties present evidence for the panel to determine whether a firm or individual has engaged in conduct that violates FINRA rules, SEC regulations or federal securities laws. In reaching its decision, the hearing panel also considers previous court, SEC, and NAC decisions to determine if violations occurred. The NAC is the national committee which reviews initial decisions rendered in FINRA disciplinary and membership proceedings.

For each case, the hearing panel will issue a written decision explaining the reasons for its ruling and consult the FINRA Sanction Guidelines to determine the appropriate sanctions if violations have occurred. FINRA also, when feasible and appropriate, can order firms and individuals to make restitution to harmed customers.

Appeals Process

Under FINRA's disciplinary procedures, a firm or individual has the right to appeal a hearing panel decision to the NAC, or the NAC may on its own initiate a review of a decision. On appeal, the NAC will determine if a hearing panel's findings were legally correct, factually supported and consistent with FINRA's Sanction Guidelines. While a panel decision is on appeal, the sanction is not enforced against the firm or individual.

Unless FINRA's Board of Governors decides to review the NAC's appellate decision, that decision represents FINRA's final action. A firm or individual can appeal FINRA's decision to the SEC and then to federal court.

Date of Decision Proceeding No.sort descending Title Type
Sep 22, 2009 2005001502703 Hearing Panel Decision in Department of Enforcement v. Ronald E. Hardy, Jr. Disciplinary Decision
Feb 28, 2007 2005001514501 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Aug 15, 2008 2005001729501 Hearing Panel Decision in Department of Enforcement v. Gerald J. Kesner Disciplinary Decision
Feb 26, 2010 2005001729501 Gerald J. Kesner Disciplinary Decision
Jun 12, 2008 2005001798201 Order Denying Respondent's Motion for Summary Disposition Disciplinary Order
Aug 14, 2007 2005001819101 Hearing Panel Decision in Department of Enforcement v. Domestic Securities, Inc. Disciplinary Decision
Dec 28, 2006 2005001819101 Order Granting Complainant's Motion to Strike in Part the Introduction to Respondent's Answer Disciplinary Order
Oct 2, 2008 2005001819101 Domestic Securities Inc. Disciplinary Decision
Jun 18, 2008 2005001919501 Hearing Panel Decision in Department of Enforcement v. Jennifer Jordan Disciplinary Decision
Oct 16, 2007 2005001919501 Order Granting in Part and Denying in Part Complainant's Motion for Summary Disposition and Denying Respondent's Motion for Summary Disposition Disciplinary Order
Aug 21, 2009 2005001919501 Jennifer Jordan Disciplinary Decision
Jul 13, 2007 2005001919501 Order Denying Respondent's Motion to Compel Production of Exculpatory and Other Material Documents Disciplinary Order
Dec 20, 2011 2005001988201 Mark B. Beloyan and Tradespot Markets, Inc. Disciplinary Decision
Aug 6, 2010 2005001988201 Amended Hearing Panel Decision in Department of Enforcement v. Mark B. Beloyan and Tradespot Markets, Inc. Disciplinary Decision
Apr 8, 2010 200500224102 Order Limiting the Dissemination of Personal, Confidential Information Disciplinary Order
Dec 30, 2011 2005002244102 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Mar 7, 2008 2005002570601 Paul Douglas Paratore Disciplinary Decision
Apr 20, 2007 2005002570601 Hearing Panel Decision in Department of Enforcement v. Paul Douglas Paratore Disciplinary Decision
Jun 19, 2007 20050025930 Hearing Panel Decision in Department of Enforcement v. Carolyn S. Everhard Disciplinary Decision
Aug 27, 2008 2005003188901 Order Denying Respondent's Motion to Compel Production of Documents Disciplinary Order
Jan 29, 2009 2005003188901 Amended Hearing Panel Decision in Department of Enforcement v. Richard G. Cody Disciplinary Decision
May 10, 2010 2005003188901 Richard G. Cody Disciplinary Decision
Mar 19, 2009 2005003295801 Amended Extended Hearing Panel Decision in Department of Enforcement v. Andrew W. Quinn Disciplinary Decision
Apr 4, 2008 2005003437102 Order Granting Respondent's Motion Pursuant to Rule 9252 to Compel Testimony at Hearing Disciplinary Order
Apr 17, 2009 2005003437102 Extended Hearing Panel Decision in Department of Enforcement v. Michael Lee Bullock Disciplinary Decision

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