Adjudications & Decisions
When FINRA determines that violations of securities rules have occurred and formal disciplinary action is necessary, the Enforcement 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.
View All Adjudications & Decisions
| Date of Decision | Proceeding No. | Title | Type |
|---|---|---|---|
| October 23, 2006 | EAF0300770001 | Order Permitting Expert Testimony | Disciplinary Order |
| October 20, 2006 | 2005000127502 | Order Denying Complainant's Motion for Partial Summary Disposition | Disciplinary Order |
| October 20, 2006 | E9B2002055601 | Hearing Panel Decision in Department of Enforcement v. Respondent | Redacted Decision |
| October 11, 2006 | EAF0400300001 | Order Denying Respondents' Rule 9252 Motion for the Production of Data, Documents and Testimony | Disciplinary Order |
| October 10, 2006 | EAF0400300001 | Order Directing the Parties to Cease Sending Non-Compliant Communications to the Office of Hearing Officers | Disciplinary Order |
| October 09, 2006 | 20042000056-01 | Order Deferring Ruling on Motion for Summary Disposition | Disciplinary Order |
| October 04, 2006 | ARB060029 | Order Dismissing Defense and Granting Respondents Leave to File a Motion for Leave to Amend Their Request for Hearing | Expedited Order |
| October 03, 2006 | EAF0400300001 | Order Directing Respondents to File Exhibits and Witness List in Compliance With Pre-Hearing Order, and Extending Related Deadlines | Disciplinary Order |
| September 28, 2006 | E8A2003091501 | Order Granting Motion for to Permit Certain Witnesses to Have Counsel Present | Disciplinary Order |
| September 28, 2006 | ARB060022 | Order Deeming Defense as Abandoned, Hearing as Waived, and NASD Suspension Notice as Final | Expedited Order |
| September 20, 2006 | ARB060029 | Order Clarifying Agenda for Pre-Hearing Conference | Expedited Order |
| September 19, 2006 | 2005003490801 | Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht | Disciplinary Decision |
| September 19, 2006 | C07050042 | Hearing Panel Decision in Department of Enforcement vs. Wanda P. Sears | Disciplinary Decision |
| September 18, 2006 | CAF030042 | Hearing Panel Decision in Department of Enforcement vs. Florence Sarah Pollard | Disciplinary Decision |
| September 15, 2006 | EAF0400300001 | Order Granting Parties Leave to Offer Expert Testimony and Amending Schedule for Hearing | Disciplinary Order |
| September 15, 2006 | FPI060008 | Decision in Department of Market Regulation v. Respondent | Expedited Decision, Rule 9550 Expedited Decisions, Redacted Decision |
| September 15, 2006 | ARB060023 | Order Overruling Objection to Telephonic Hearing | Expedited Order |
| September 14, 2006 | E072004006101 and 2005002392101 | Order Denying Respondent Firm's Motions to Consolidate | Disciplinary Order |
| September 14, 2006 | DFC060004 | Order Setting a Pre-Hearing Conference | Expedited Order |
| September 13, 2006 | E102003025201 | Order Granting Motion to Adjourn Proceeding and Setting Pre-Hearing Conference | Disciplinary Order |
| September 13, 2006 | E102003130804 | Hearing Panel Decision in Department of Enforcement vs. Michael Francis O'Neill | Disciplinary Decision |
| September 12, 2006 | 2005000631501 | Hearing Panel Decision in Department of Enforcement vs. Bryan L. Claggett | Disciplinary Decision |
| September 11, 2006 | E072004088501 | Hearing Panel Decision in Department of Enforcement vs. Fausto E. Callava | Disciplinary Decision |
| September 08, 2006 | CAF040079 | Order Denying Respondent's Request for Leave to File Motion in Limine | Disciplinary Order |
| September 08, 2006 | E072004072501 | Hearing Panel Decision in Department of Enforcement vs. Andrew J. Hardin | Disciplinary Decision |