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 Decisionsort ascending Proceeding No. Title Type
Jul 19, 2001 C8A000059 Hearing Panel Decision in Department of Enforcement v. Roger A. Hanson Disciplinary Decision
Jul 6, 2001 C9B000013 Hearing Panel Decision as to Respondent Redacted Decision
Jul 3, 2001 C3A000007 Hearing Panel Decision as to Respondent Redacted Decision
Jun 28, 2001 C3A000054 Hearing Panel Decision in Department of Enforcement v. Robert M. McCulley Disciplinary Decision
Jun 27, 2001 CAF000033 Hearing Panel Decision in Department of Enforcement v. Dennis Sturm Disciplinary Decision
Jun 26, 2001 CAF000040 Hearing Panel Decision in Department of Enforcement v. Michelle McDonough Disciplinary Decision
Jun 22, 2001 CAF990018 Ryan Mark Reynolds Disciplinary Decision
Jun 5, 2001 C10000006 Hearing Panel Decision in Department of Enforcement v. Leonard Vincent Lombardo Disciplinary Decision
Jun 4, 2001 C8A980097 Michael F. Flannigan & Protective Group Securities Corporation Disciplinary Decision
May 29, 2001 C8B000013 Hearing Panel Decision in Department of Enforcement v. Patrick A. Brady Disciplinary Decision
May 23, 2001 CAF000013 Order Granting Complainant's Motion to Preclude the Introduction of Expert Testimony Disciplinary Order
May 21, 2001 CAF000013 Order Denying Respondents' Motion For The Production Of Documents From Nasdaq And Requiring The Complainant To File A Declaration Certifying That It Has Complied With Rule 9251 Disciplinary Order
May 17, 2001 C8A990025 Timothy James Fergus, Frank Thomas Devine, & Richard Alan Blake Disciplinary Decision
May 17, 2001 C02990052 Shailesh B. Patel Disciplinary Decision
May 17, 2001 CAF000045 Order Denying Respondents' Motion to Compel the Production of Documents and for a List of Withheld Documents Disciplinary Order
May 16, 2001 C02990022 Joseph Gaetano Gerace Disciplinary Decision
May 15, 2001 C3A990071 Hearing Panel Decision in Department of Enforcement v. Josephthal & Co., Inc., Dan D. Purjes, and Paul H. Fitzgerald Disciplinary Decision
May 14, 2001 C05000021 Hearing Panel Decision in Department of Enforcement v. Charles K. Waddell Disciplinary Decision
May 14, 2001 C10000140 Hearing Panel Decision in Department of Enforcement v. Mario J. Coniglione Disciplinary Decision
May 11, 2001 C05010012 Order Granting Respondent's Request for Production of Documents Pursuant to NASD Procedural Rule 9252 Disciplinary Order
May 10, 2001 C3A000056 Order Denying Motion to Dismiss Disciplinary Order
May 2, 2001 C10000116 Hearing Panel Decision in Department of Enforcement v. Vincent P. Coniglione Disciplinary Decision
May 1, 2001 C3A000056 Order Denying Motion for Reconsideration Disciplinary Order
Apr 30, 2001 C10000139 Hearing Panel Decision in Department of Enforcement v. Frank A. Persico Disciplinary Decision
Apr 26, 2001 ARB000011 Non-Summary Suspension Consolidated Proceeding ARB000011 Expedited Decision, Non-Summary Proceeding

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