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
Aug 22, 2000 C3A990035 Order Consolidating Proceedings 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 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 C3A990071 Protective Order Regarding Complainant's Rule 8210 Requests to Respondents Disciplinary Order
Aug 2, 2000 ARB000005 Non-Summary Suspension Proceeding ARB000005 Expedited Decision, Non-Summary Proceeding
Aug 2, 2000 C01990013 Hearing Panel Decision as to Respondent Redacted Decision
Jul 31, 2000 CMS960174 Order Denying Respondent's Motion to Sever and Preclude Disciplinary Order
Jul 28, 2000 C9B000007 Order Denying Motion to Compel Production of Documents Disciplinary Order
Jul 28, 2000 C8A980097 Hearing Panel Decision in Department of Enforcement v. Adam Galas, David, H. Shapiro, John J. Flynn, Protective Group Securities Corporation, and Michael F. Flannigan Disciplinary Decision
Jul 20, 2000 C3A000007 Order Denying Respondents' Motions to Compel Testimony Disciplinary Order
Jul 18, 2000 C10000046 Order Regarding Respondent's Motion for Leave to File a Late Answer Disciplinary Order
Jul 6, 2000 C3A990067 Order Denying Motion for Summary Disposition Disciplinary Order
Jul 5, 2000 C01000003 Order Denying Respondents' Motion Seeking Leave to Introduce Expert Witness Testimony Disciplinary Order
Jul 3, 2000 C9B990019 Hearing Panel Decision as to Respondent Redacted Decision
Jun 28, 2000 CAF970011 Richard Steven Levitov & Ralph Joseph Angeline Disciplinary Decision
Jun 27, 2000 C02990052 Hearing Panel Decision in Department of Enforcement v. Shailesh B. Patel Disciplinary Decision
Jun 26, 2000 C10980008 Hearing Panel Decision as to Respondent Redacted Decision
Jun 23, 2000 C10990121 Majority Hearing Panel Decision in Department of Enforcement v. Nelson C. Onyejiaka - Dissent Attached Disciplinary Decision
Jun 19, 2000 C9A980032 In the Matter of Department of Enforcement, Complainant v. Respondent 1 Disciplinary Decision, Redacted Decision
Jun 14, 2000 C8A000022 Order Denying Respondent's Motion for Withheld Document List Disciplinary Order
Jun 13, 2000 C8A990025 Hearing Panel Decision in Department of Enforcement v. Timothy James Fergus, Frank Thomas Devine, and Richard Alan Blake Disciplinary Decision
Jun 13, 2000 CMS000015 Notice of Withdrawal of Hearing Officer Disciplinary Order
Jun 12, 2000 C10990172 Hearing Panel Decision in Department of Enforcement v. John L. Bauer Disciplinary Decision

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