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 Decisionsort descending Proceeding No. Title Type
Oct 30, 2018 2015046971701 Windsor Street Capital, L.P. (f/k/a Meyers Associates, L.P.) Disciplinary Decision
Oct 31, 2018 2016050025401 Order Granting in Part Enforcement’s Pre-Hearing Motion Disciplinary Order
Nov 12, 2018 2015047303901 APPEALED: Kyle P. Harrington and Linda C. Milberger Disciplinary Decision
Nov 13, 2018 2016050205901 APPEALED: Charles A. Laverty Disciplinary Decision
Nov 14, 2018 2014041862701 APPEALED: Spencer Edwards, Inc. Disciplinary Decision
Nov 21, 2018 SD-2203 Gates Capital Corporation Statutory Disqualification, Approvals
Nov 29, 2018 SD-2095 Ronald B. Smith Statutory Disqualification, Approvals
Jan 8, 2019 2013037522501 Trevor Michael Saliba, Sperry Randall Younger, Richard Daniel Tabizon, and Arthur Mansourian Disciplinary Decision
Jan 8, 2019 2015046759201 Todd B. Wyche Disciplinary Decision

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