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
Oct 20, 2000 C10990121 Majority Hearing Panel Decision in Department of Enforcement v. Nelson C. Onyejiaka - Dissent Attached Disciplinary Decision
Oct 16, 2000 C05940077 John P. Goldsworthy Disciplinary Decision
Oct 10, 2000 CAF000030 Order Granting Enforcement's Motion for Leave to Withhold from Production Certain Documents and Granting Other Relief Disciplinary Order
Oct 9, 2000 C07000023 Pre-Hearing Order Disciplinary Order
Oct 6, 2000 C9B000013 Order Denying Respondent's Motion for Leave to Offer Expert Witness Testimony Disciplinary Order
Oct 5, 2000 C05000021 Order Granting Complainant's Motion for Leave to Offer Telephone Testimony and to Allow Witness to be Assisted by (Remote) Interpreter Disciplinary Order
Oct 3, 2000 C3A990031 Hearing Panel Decision in Department of Enforcement v. Charles W. Testino Disciplinary Decision
Sep 28, 2000 C10000140 Order Denying Motion for More Definite Statement Disciplinary Order
Sep 25, 2000 C8A990081 Hearing Panel Decision in Department of Enforcement v. James B. Chase Disciplinary Decision
Sep 19, 2000 C10990212 Order Denying Enforcement's Motion for Partial Summary Disposition Against Respondent Disciplinary Order
Sep 13, 2000 CAF990018 Hearing Panel Decision in Department of Enforcement v. Premier Capital Management, Bryan James O'Leary, and Ryan Mark Reynolds Disciplinary Decision
Sep 6, 2000 C8A000019 Order Convening Settlement Conference Disciplinary Order
Sep 5, 2000 C05990026 Hearing Panel Decision in Department of Enforcement v. Christopher M. Block, Jeffrey S. Burke, and Jennifer L. Gonzalez Disciplinary Decision
Sep 5, 2000 C05000002 Hearing Panel Decision in Department of Enforcement v. Richard A. Frondorf Disciplinary Decision
Sep 1, 2000 C8A990017 David L. Foran Disciplinary Decision
Aug 28, 2000 C02990022 Hearing Panel Decision in Department of Enforcement v. Joseph Gaetano Gerace Disciplinary Decision
Aug 28, 2000 C3A990071 Order Granting Respondents Motion in Limine Requesting Production of Documents Disciplinary Order
Aug 22, 2000 C05990019 Order Granting Partial Summary Disposition In Favor Of The Department Of Enforcement And Continuing This Proceeding For Hearing On Sanctions Disciplinary Decision
Aug 22, 2000 C05990019 Order Granting Partial Summary Disposition In Favor Of The Department Of Enforcement And Continuing This Proceeding For Hearing On Sanctions Disciplinary Decision
Aug 22, 2000 C3A990035 Order Consolidating Proceedings Disciplinary Order
Aug 16, 2000 CAF980005 Howard R. Perles & Laurence M. Geller Disciplinary Decision
Aug 3, 2000 C01000003 Order Denying Respondents' Request for a Second Continuance of the Hearing Disciplinary Order
Aug 2, 2000 C01990013 Hearing Panel Decision as to Respondent Redacted Decision
Aug 2, 2000 ARB000005 Non-Summary Suspension Proceeding ARB000005 Expedited Decision, Non-Summary Proceeding
Aug 2, 2000 C3A990071 Protective Order Regarding Complainant's Rule 8210 Requests to Respondents Disciplinary Order

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