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
Dec 10, 2008 E8A2005014902 North Woodward Financial Corp. and Douglas A. Troszak Disciplinary Decision
Nov 30, 2007 E8A2005014902 Hearing Panel Decision in Department of Enforcement v. North Woodward Financial Corp. and Douglas A. Troszak Disciplinary Decision
Dec 12, 2006 E8A20050252 Hearing Panel Decision in Department of Enforcement vs. CMG Institutional Trading, LLC and Shawn D. Baldwin Disciplinary Decision
Feb 20, 2008 E8A20050252 CMG Institutional Trading, LLC and Shawn D. Baldwin Disciplinary Decision
Feb 24, 2009 E9A2002010501 Kevin M. Glodek Disciplinary Decision
Jul 27, 2007 E9A2004001901 Douglas J. Toth Disciplinary Decision
Aug 9, 2006 E9A2004001901 Hearing Panel Decision in Department of Enforcement vs. Douglas J. Toth Disciplinary Decision
Jul 10, 2007 E9A2004001901 Douglas J. Toth Disciplinary Decision
Jul 12, 2007 E9A2004048801 Hearing Panel Decision in Department of Enforcement v. Brian J. Kelly Disciplinary Decision
Dec 16, 2008 E9A2004048801 Brian J. Kelly Disciplinary Decision
Apr 24, 2007 E9B2002010501 Hearing Panel Decision in Department of Enforcement v. Kevin M. Glodek Disciplinary Decision
Oct 20, 2006 E9B2002055601 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Mar 20, 2007 E9B2003026301 Hearing Panel Decision in Department of Enforcement v. Timothy Behany, Edward M. VanGrouw, and Carl Martin Trevisan Disciplinary Decision
Apr 30, 2008 E9B2003026301 Carl Martin Trevisan Disciplinary Decision
Jan 11, 2006 E9B2003033501 Order Denying In Part and Granting In Part Respondent's Motion to Compel Discovery Disciplinary Order
Mar 3, 2006 E9B2003033501 Order Sustaining Complainant's Objections to Respondent's Expert Witness Designation and Report Disciplinary Order
Feb 9, 2006 E9B2003033501 Order Granting Respondent's Motion for Issuance Of Rule 8210 Requests for Information Disciplinary Order
Jul 30, 2009 E9B2003033701 Keith Howard Medeck Disciplinary Decision
Aug 11, 2010 E9B2003033701 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Nov 9, 2006 EAF0300770001 Order For Sequestration of Witnesses Disciplinary Order
Oct 23, 2006 EAF0300770001 Order Permitting Expert Testimony Disciplinary Order
Nov 1, 2006 EAF0400300001 Order Regarding Hearing Procedures Disciplinary Order
Oct 11, 2006 EAF0400300001 Order Denying Respondents' Rule 9252 Motion for the Production of Data, Documents and Testimony Disciplinary Order
Oct 10, 2006 EAF0400300001 Order Directing the Parties to Cease Sending Non-Compliant Communications to the Office of Hearing Officers Disciplinary Order
Oct 3, 2006 EAF0400300001 Order Directing Respondents to File Exhibits and Witness List in Compliance With Pre-Hearing Order, and Extending Related Deadlines Disciplinary Order

Pages