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. Titlesort descending Type
Aug 6, 2003 C9B020052 Hearing Panel Decision in Department of Enforcement v. Brian J. Clark Disciplinary Decision
Jul 12, 2007 E9A2004048801 Hearing Panel Decision in Department of Enforcement v. Brian J. Kelly Disciplinary Decision
Jul 8, 2003 C01020025 Hearing Panel Decision in Department of Enforcement v. Brookes McIntosh Bendetsen Disciplinary Decision
Dec 19, 2011 2007010158001 Hearing Panel Decision in Department of Enforcement v. CapWest Securities Inc. Disciplinary Decision
Jun 24, 2011 2008011725901 Hearing Panel Decision in Department of Enforcement v. Carlos Francisco Otalvaro Disciplinary Decision
Mar 21, 2013 2010024837301 Hearing Panel Decision in Department of Enforcement v. Carlos Francisco Otalvaro Disciplinary Decision
Oct 29, 1998 C3B980006 Hearing Panel Decision in Department of Enforcement v. Carlton Case Ellis Disciplinary Decision
Jun 19, 2007 20050025930 Hearing Panel Decision in Department of Enforcement v. Carolyn S. Everhard Disciplinary Decision
Dec 3, 2003 CMS030006 Hearing Panel Decision in Department of Enforcement v. Castle Securities Corp. Disciplinary Decision
Mar 27, 2003 C3A010036 Hearing Panel Decision in Department of Enforcement v. Castle Securities Corp., Michael Studer, and Respondent 3 Disciplinary Decision
Sep 15, 2011 2010023719601 Hearing Panel Decision in Department of Enforcement v. Chad A. McCartney Disciplinary Decision
Jun 5, 2000 C05990034 Hearing Panel Decision in Department of Enforcement v. Charles Douglas Gulley, Jr. Disciplinary Decision
May 14, 2001 C05000021 Hearing Panel Decision in Department of Enforcement v. Charles K. Waddell Disciplinary Decision
Oct 3, 2000 C3A990031 Hearing Panel Decision in Department of Enforcement v. Charles W. Testino Disciplinary Decision
Mar 9, 2000 C3A990031 Hearing Panel Decision in Department of Enforcement v. Charles W. Testino Disciplinary Decision
Nov 5, 2002 C01010009 Hearing Panel Decision in Department of Enforcement v. Chris Dinh Hartley Disciplinary Decision
Aug 5, 2002 C8A010048 Hearing Panel Decision in Department of Enforcement v. Christian W. Baker Disciplinary Decision
Jun 30, 1998 C3A970072 Hearing Panel Decision in Department of Enforcement v. Christopher E. Jann Disciplinary Decision
Oct 12, 2009 2009017496501 Hearing Panel Decision in Department of Enforcement v. Christopher J. Perrott Disciplinary Decision
Sep 5, 2000 C05990026 Hearing Panel Decision in Department of Enforcement v. Christopher M. Block, Jeffrey S. Burke, and Jennifer L. Gonzalez Disciplinary Decision
Jun 23, 2003 C3B020013 Hearing Panel Decision in Department of Enforcement v. Christopher R. Van Dyk Disciplinary Decision
Oct 14, 2008 2006006890801 Hearing Panel Decision in Department of Enforcement v. CMG Institutional Trading, LLC and Shawn Baldwin Disciplinary Decision
Jun 9, 2009 2008012026601 Hearing Panel Decision in Department of Enforcement v. CMG Institutional Trading, LLC and Shawn D. Baldwin Disciplinary Decision
Jun 25, 1999 CAF980022 Hearing Panel Decision in Department of Enforcement v. Coleman & Company Securities, Inc. and Aaron J. Yorke, IV Disciplinary Decision
Dec 13, 2002 C04020006 Hearing Panel Decision in Department of Enforcement v. Curtis W. Triggs, Jr. Disciplinary Decision

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