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
May 6, 2011 2005003437102 Michael Lee Bullock Disciplinary Decision
Feb 26, 2008 2005003437102 Order Denying Motion for Leave to Offer Expert Testimony Disciplinary Order
Feb 15, 2008 2005003437102 Order Denying Respondent's Motion to Compel Production of Documents Disciplinary Order
Apr 4, 2008 2005003437102 Order Granting Department of Enforcement's Motion to Strike Respondent's Unclean Hands Affirmative Defense Disciplinary Order
Apr 4, 2008 2005003437102 Order Denying Respondent's Motion for Summary Disposition Disciplinary Order
Sep 19, 2006 2005003490801 Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht Disciplinary Decision
May 6, 2010 2005003610701 Extended Hearing Panel Decision in Department of Enforcement v. William J. Murphy, Carl M. Birkelbach, and Respondent Firm Disciplinary Decision
Oct 20, 2011 2005003610701 William J. Murphy, Carl M. Birkelbach, and Birkelbach Investment Securities, Inc. Disciplinary Decision
Sep 28, 2007 200500631501 Bryan L. Claggett Disciplinary Decision
Aug 31, 2009 2006003672401 Hearing Panel Decision in Department of Enforcement v. Patrick F. Harte, Jr. Disciplinary Decision
Dec 18, 2008 2006003738501 Hearing Panel Decision in Department of Enforcement v. Mission Securities Corporation and Craig M. Biddick Disciplinary Decision
Feb 25, 2010 2006003738501 Mission Securities Corporation and Craig M. Biddick Disciplinary Decision
Dec 19, 2008 2006003825001 Hearing Panel Decision in Department of Enforcement v. Joseph William Hagan Disciplinary Decision
Dec 11, 2008 2006003834901 Hearing Panel Decision in Department of Moustafa M. Zayed Disciplinary Decision
Aug 19, 2010 2006003834901 Moustafa M. Zayed Disciplinary Decision
Apr 20, 2010 2006003916901 Hearing Panel Decision in Department of Enforcement v. Richard Michael Bowers Disciplinary Decision
Oct 1, 2008 2006003995001 Hearing Panel Decision in Department of Enforcement v. Eddmon Mark Hodge Disciplinary Decision
Jan 26, 2011 2006004122402 Extended Hearing Panel Decision in Department of Enforcement v. Hedge Fund Capital Partners LLC and Howard G. Jahre Disciplinary Decision
May 1, 2012 2006004122402 Hedge Fund Capital Partners, LLC and Howard G. Jahre Disciplinary Decision
Apr 10, 2008 20060042305-01 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Aug 7, 2007 20060042305-01 Scheduling Order Disciplinary Order
Sep 7, 2007 2006004240301 Hearing Panel Decision in Department of Enforcement v. Trent A. Johnson Disciplinary Decision
May 2, 2008 2006004377701 Hearing Panel Decision in Department of Enforcement v. Paul-Bryan Zenke Disciplinary Decision
Dec 14, 2009 2006004377701 Paul Bryan Zenke Disciplinary Decision
Apr 9, 2007 2006004493301 Hearing Panel Decision in Department of Enforcement v. Mark S. Ritchey Disciplinary Decision

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