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 ascending Title Type
Sep 28, 2012 2008012925001 Extended Hearing Panel Decision in Department of Enforcement v. The Dratel Group, Inc. and William M. Dratel Disciplinary Decision
Jul 28, 2011 2008012925001 Order Regarding Pending Motions and Pre-Hearing Issues Disciplinary Order
Mar 15, 2013 20080127674, 20080133768 Hearing Panel Decision in Department of Enforcement v. Angelo Xagoraris Disciplinary Decision
Aug 1, 2014 20080127674 & 20080133768 Angelo Xagoraris Disciplinary Decision
Aug 19, 2010 2008012531501 Hearing Panel Decision in Department of Enforcement v. Kevin Scott Pound Disciplinary Decision
Mar 3, 2011 2008012169101 Hearing Panel Decision in Department of Enforcement v. AIS Financial, Inc. Disciplinary Decision
Mar 7, 2012 2008012137601 Gregory Richard Imbruce Disciplinary Decision
Feb 25, 2010 20080121376 Order Denying Motion to Dismiss Disciplinary Order
Jan 7, 2011 20080121376 Hearing Panel Decision in Department of Market Regulation v. Gregory Richard Imbruce Disciplinary Decision
Oct 5, 2009 20080120960 Hearing Panel Decision in Department of Enforcement v. Rebecca A. Reichman Disciplinary Decision
Jun 9, 2009 2008012026601 Hearing Panel Decision in Department of Enforcement v. CMG Institutional Trading, LLC and Shawn D. Baldwin Disciplinary Decision
Oct 8, 2010 2008012026601 CMG Institutional Trading, LLC and Shawn D. Baldwin Disciplinary Decision
Jul 21, 2011 200801201960 Rebecca Amy Reichman Disciplinary Decision
Mar 7, 2016 2008011762801r APPEALED: Mitchell H. Fillet Disciplinary Decision
Oct 2, 2013 2008011762801 Mitchell H. Fillet Disciplinary Decision
Dec 13, 2011 2008011762801 Amended Hearing Panel Decision in Department of Enforcement v. Mitchell Fillet Disciplinary Decision
Jun 24, 2011 2008011725901 Hearing Panel Decision in Department of Enforcement v. Carlos Francisco Otalvaro Disciplinary Decision
Mar 9, 2012 20080117243 Amended Hearing Panel Decision in Department of Enforcement v. Christopher Robert Ranni Disciplinary Decision
Mar 30, 2011 2008011719501 Hearing Panel Decision in Department of Enforcement v. Tina Newman Disciplinary Decision
Jun 13, 2011 2008011701203 Hearing Panel Decision in Department of Enforcement v. Daniel James Gallagher and Vision Securities Inc. Disciplinary Decision
Dec 12, 2012 2008011701203 Daniel James Gallagher Disciplinary Decision
Jan 19, 2011 2008011684001 Extended Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Dec 31, 2013 2008011675301 Extended Hearing Panel Decision in Department of Enforcement v. Timothy B. Ruggiero Disciplinary Decision
May 13, 2011 2007011937001 Howard Braff Disciplinary Decision
May 19, 2010 2007011937001 Hearing Panel Decision in Department of Enforcement v. Howard Braff Disciplinary Decision

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