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. Titlesort ascending Type
Oct 1, 2015 2013035344201 Protective Order Governing Personal Confidential Information Disciplinary Order
Jul 28, 2016 2013035817701 Protective Order Governing Personal Confidential Information Disciplinary Order
Jan 1, 2000 SD00004 Proposed Association of X Redacted Decision, Statutory Disqualification, Approvals
Jun 28, 2007 E102003025201 Procedural Pre-Hearing Order Disciplinary Order
Jan 2, 1998 C10970164 Pre-Hearing Scheduling Order and Rulings on Respondent's Discovery Motion Disciplinary Order
Apr 8, 2003 CAF020048 Pre-Hearing Order Directing ___________ to File a Power of Attorney Disciplinary Order
Apr 4, 2002 C02010041 Pre-Hearing Order Disciplinary Order
Oct 9, 2000 C07000023 Pre-Hearing Order Disciplinary Order
Apr 23, 2004 C9B040033 Pre-Hearing Order Disciplinary Order
Mar 22, 1998 C8A960040 Podesta & Co. & Carol P. Foley Disciplinary Decision
Nov 6, 2014 SD-2017 Piper Jaffray & Co. Statutory Disqualification, Approvals
Oct 20, 2016 SD-2071 PHX Financial, Inc. Statutory Disqualification, Approvals
Dec 28, 2005 C02040016 Philippe N. Keyes Disciplinary Decision
Jul 25, 2007 C02040016 Philippe N. Keyes Disciplinary Decision
Jan 29, 2019 2014043863001 APPEALED: Peter Orlando Disciplinary Decision
Apr 4, 2016 20120320803-01 APPEALED: Peter J. Auzers and Shiva Naby Disciplinary Decision
Aug 17, 2006 C9B040059 Perpetual Securities, Inc., Cathy Y. Huang, and Youwei P. Xu Disciplinary Decision
Feb 10, 2005 C07030055 PAZ Securities, Inc. and Joseph Mizrachi Disciplinary Decision
May 3, 2005 C8A030062 Paul Zdzieblowski Disciplinary Decision
May 11, 2004 C01020014 Paul Joseph Benz Disciplinary Decision
Nov 1, 2001 C02000037 Paul John Hoeper Disciplinary Decision
Mar 18, 2016 2012034719701 APPEALED: Paul E. Taboada Disciplinary Decision
Jul 24, 2017 2012034719701 APPEALED: Paul E. Taboada Disciplinary Decision
Mar 7, 2008 2005002570601 Paul Douglas Paratore Disciplinary Decision
Aug 7, 2015 20090208031-02 Paul Charles Dotson Disciplinary Decision