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 16, 2016||2014039173301||Case Management and Scheduling Order||Disciplinary Order|
|Feb 14, 2005||CMS030006||Castle Securities Corp.||Disciplinary Decision|
|Feb 19, 2004||C3A010036||Castle Securities Corp. & Michael Studer||Disciplinary Decision|
|Dec 10, 2012||2010023719601||Chad A. McCartney||Disciplinary Decision|
|Jan 3, 2007||C3A040001||Charles A. DaCruz and Thomas J. Linda||Disciplinary Decision|
|Jan 8, 2007||C9A040024||Charles C. Fawcett IV||Disciplinary Decision|
|Apr 2, 2015||2012034045101||Charles H. Melvin, Jr.||Disciplinary Decision|
|Feb 27, 2007||C9B050011||Charles J. Cuozzo, Jr.||Disciplinary Decision|
|Apr 24, 2014||2011029760201||Charles Schwab & Company, Inc.||Disciplinary Decision|
|Dec 3, 2003||C01010009||Chris Dinh Hartley||Disciplinary Decision|
|May 20, 2016||SD-2027||APPEALED: Christopher Cota with Capital Financial Services, Inc.||Statutory Disqualification, Denials|
|Aug 29, 2016||ARB160009||Christopher John Gimblet||Expedited Decision|
|Nov 20, 1997||C07960065||Christopher K. Cutchens||Disciplinary Decision|
|Aug 16, 2001||C05990026||Christopher M. Block & Jeffrey S. Burke||Disciplinary Decision|
|Aug 9, 2004||C3B020013||Christopher R. Van Dyk||Disciplinary Decision|
|Mar 12, 1998||C3A960040||Cindy M. Goldberg||Disciplinary Decision|
|Sep 8, 2016||SD-2048||Citigroup Global Markets Inc.||Statutory Disqualification|
|Aug 10, 2015||SD-MCDC-031 et al.||Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Raymond James & Associates, Inc.||Statutory Disqualification, Approvals|
|Jan 20, 1998||C06950004||Clinger & Co., Inc., & Norman E. Clinger||Disciplinary Decision|
|Aug 11, 1997||C01960005||Clyde Joseph Bruff||Disciplinary Decision|
|May 3, 2010||2006006890801||CMG Institutional Trading LLC and Shawn D. Baldwin||Disciplinary Decision|
|Feb 20, 2008||E8A20050252||CMG Institutional Trading, LLC and Shawn D. Baldwin||Disciplinary Decision|
|Oct 8, 2010||2008012026601||CMG Institutional Trading, LLC and Shawn D. Baldwin||Disciplinary Decision|
|Nov 30, 2015||SD-MCDC-049 et al.||Comerica Securities, Inc., Crews & Associates, Inc., Northland Securities, Inc., PNC Capital Markets LLC||Statutory Disqualification, Approvals|
|Mar 25, 2015||SD-2025||ConvergEx Execution Solutions, LLC||Statutory Disqualification, Approvals|