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|
|Aug 31, 2009||2006003672401||Hearing Panel Decision in Department of Enforcement v. Patrick F. Harte, Jr.||Disciplinary Decision|
|Sep 28, 2007||200500631501||Bryan L. Claggett||Disciplinary Decision|
|Oct 20, 2011||2005003610701||William J. Murphy, Carl M. Birkelbach, and Birkelbach Investment Securities, Inc.||Disciplinary Decision|
|May 6, 2010||2005003610701||Extended Hearing Panel Decision in Department of Enforcement v. William J. Murphy, Carl M. Birkelbach, and Respondent Firm||Disciplinary Decision|
|Sep 19, 2006||2005003490801||Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht||Disciplinary Decision|
|May 6, 2011||2005003437102||Michael Lee Bullock||Disciplinary Decision|
|Apr 17, 2009||2005003437102||Extended Hearing Panel Decision in Department of Enforcement v. Michael Lee Bullock||Disciplinary Decision|
|Feb 26, 2008||2005003437102||Order Denying Motion for Leave to Offer Expert Testimony||Disciplinary Order|
|Feb 15, 2008||2005003437102||Order Denying Respondent's Motion to Compel Production of Documents||Disciplinary Order|
|Apr 4, 2008||2005003437102||Order Granting Department of Enforcement's Motion to Strike Respondent's Unclean Hands Affirmative Defense||Disciplinary Order|
|Apr 4, 2008||2005003437102||Order Denying Respondent's Motion for Summary Disposition||Disciplinary Order|
|Apr 4, 2008||2005003437102||Order Granting Respondent's Motion Pursuant to Rule 9252 to Compel Testimony at Hearing||Disciplinary Order|
|Mar 19, 2009||2005003295801||Amended Extended Hearing Panel Decision in Department of Enforcement v. Andrew W. Quinn||Disciplinary Decision|
|Aug 27, 2008||2005003188901||Order Denying Respondent's Motion to Compel Production of Documents||Disciplinary Order|
|Jan 29, 2009||2005003188901||Amended Hearing Panel Decision in Department of Enforcement v. Richard G. Cody||Disciplinary Decision|
|May 10, 2010||2005003188901||Richard G. Cody||Disciplinary Decision|
|Jun 19, 2007||20050025930||Hearing Panel Decision in Department of Enforcement v. Carolyn S. Everhard||Disciplinary Decision|
|Mar 7, 2008||2005002570601||Paul Douglas Paratore||Disciplinary Decision|
|Apr 20, 2007||2005002570601||Hearing Panel Decision in Department of Enforcement v. Paul Douglas Paratore||Disciplinary Decision|
|Dec 30, 2011||2005002244102||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|Apr 8, 2010||200500224102||Order Limiting the Dissemination of Personal, Confidential Information||Disciplinary Order|
|Dec 20, 2011||2005001988201||Mark B. Beloyan and Tradespot Markets, Inc.||Disciplinary Decision|
|Aug 6, 2010||2005001988201||Amended Hearing Panel Decision in Department of Enforcement v. Mark B. Beloyan and Tradespot Markets, Inc.||Disciplinary Decision|
|Jul 13, 2007||2005001919501||Order Denying Respondent's Motion to Compel Production of Exculpatory and Other Material Documents||Disciplinary Order|
|Aug 21, 2009||2005001919501||Jennifer Jordan||Disciplinary Decision|