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 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|
|Jul 30, 2010||2007010306901||FCS Securities and Dale Kleinser||Disciplinary Decision|
|May 13, 2009||2007010306901||Hearing Panel Decision in Department of Enforcement v. FCS Securities and Respondent 2||Disciplinary Decision|
|Apr 27, 2009||2007010236401||Hearing Panel Decision in Department of Enforcement v. Valerie Elaine King||Disciplinary Decision|
|Dec 19, 2011||2007010158001||Hearing Panel Decision in Department of Enforcement v. CapWest Securities Inc.||Disciplinary Decision|
|Feb 26, 2013||2007010158001||CapWest Securities, Inc.: Appealed||Disciplinary Decision|
|Oct 4, 2011||2007009981201||Robert D. Tucker||Disciplinary Decision|
|May 10, 2010||2007009981201||Hearing Panel Decision in Department of Enforcement v. 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 14, 2009||2007009461301||Order Denying Respondent's Motion to Compel Production of Witness Statements||Disciplinary Order|
|Oct 8, 2010||2007009461301||Extended Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|Aug 5, 2011||20070094468||Dirk Allen Taylor||Disciplinary Decision|
|May 21, 2010||20070094468||Amended Hearing Panel Decision in Department of Enforcement v. Dirk Allen Taylor||Disciplinary Decision|
|Oct 31, 2008||20070094454||Hearing Panel Decision in Department of Enforcement v. Sam Aubrey Foreman, Jr.||Disciplinary Decision|
|Feb 24, 2011||20070094345,20070111775||John E. Mullins and Kathleen M. Mullins||Disciplinary Decision|
|Aug 25, 2009||20070094345, 20070111775||Hearing Panel Decision in Department of Enforcement v. John Edward Mullins and Kathleen Maria Mullins||Disciplinary Decision|
|Jun 12, 2008||20070094345 and 20070111775||Order Denying Respondent 2's Motion to Dismiss||Disciplinary Order|
|Dec 6, 2008||20070094345||John E. Mullins and Kathleen M. Mullins||Disciplinary Decision|
|Oct 1, 2009||20070094253||Hearing Panel Decision in Department of Enforcement v. Richard J. Iavecchia||Disciplinary Decision|