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.
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.||Title||Type|
|May 16, 2011||2007011413501||Order Denying Respondents’ Motion to Exclude Certain Portions of the Expert Report of HGF and to Preclude His Expert Testimony on the Issue of Suitability||Disciplinary Order|
|Mar 16, 2010||2007011250901||Hearing Panel Decision in Department of Enforcement v. Angela Dionne Reed||Disciplinary Decision|
|Jan 30, 2012||2007010902501||Hearing Panel Decision in Department of Enforcement v. Jeffrey B. Pierce||Disciplinary Decision|
|Oct 1, 2013||2007010902501||Jeffrey B. Pierce||Disciplinary Decision|
|Nov 18, 2011||2007010580702||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|Feb 15, 2013||2007010580702||Dennis Thomas Palmeri, Jr.||Disciplinary Decision|
|May 18, 2011||2007010580702||Order Granting Enforcement’s Motion Concerning the Testimony of MO, MB, and JF, and Denying the Respondent’s Motion to Exclude Their Testimony||Disciplinary Order|
|Jul 14, 2009||2007010450601||Amended Hearing Panel Decision in Department of Enforcement v. Dennis Brown||Disciplinary Decision|
|Oct 13, 2011||2007010398802||Hearing Panel Decision in Department of Enforcement v. Alexander H. McKinnis||Disciplinary Decision|
|Jun 8, 2011||2007010398802||Order on Enforcement’s Objections to Respondent’s Proposed Exhibit List and Motion In Limine in Part||Disciplinary Order|
|May 13, 2009||2007010306901||Hearing Panel Decision in Department of Enforcement v. FCS Securities and Respondent 2||Disciplinary Decision|
|Jul 30, 2010||2007010306901||FCS Securities and Dale Kleinser||Disciplinary Decision|
|Apr 27, 2009||2007010236401||Hearing Panel Decision in Department of Enforcement v. Valerie Elaine King||Disciplinary Decision|
|Feb 26, 2013||2007010158001||CapWest Securities, Inc.: Appealed||Disciplinary Decision|
|Dec 19, 2011||2007010158001||Hearing Panel Decision in Department of Enforcement v. CapWest Securities Inc.||Disciplinary Decision|
|May 10, 2010||2007009981201||Hearing Panel Decision in Department of Enforcement v. Robert D. Tucker||Disciplinary Decision|
|Oct 4, 2011||2007009981201||Robert D. Tucker||Disciplinary Decision|
|Dec 17, 2010||2007009848801||Dante J. DiFrancesco||Disciplinary Decision|
|Dec 1, 2009||2007009848801||Hearing Panel Decision in Department of Enforcement v. Dante J. DiFrancesco||Disciplinary Decision|
|Nov 13, 2008||2007009702901||Hearing Panel Decision in Department of Enforcement v. Edward D. Crary, Jr.||Disciplinary Decision|
|Dec 30, 2009||2007009472201||Hearing Panel Decision in Department of Enforcement v. Warren William Wall||Disciplinary Decision|
|Oct 8, 2010||2007009461301||Extended Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|Oct 14, 2009||2007009461301||Order Denying Respondent's Motion to Compel Production of Witness Statements||Disciplinary Order|
|May 21, 2010||20070094468||Amended Hearing Panel Decision in Department of Enforcement v. Dirk Allen Taylor||Disciplinary Decision|
|Aug 5, 2011||20070094468||Dirk Allen Taylor||Disciplinary Decision|