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 descending Title Type
Oct 29, 1997 CMS960105 Order Denying Motion for Disqualification of Hearing Officer Disciplinary Order
Apr 14, 2000 CMS960174 Vincent M. Carrella Disciplinary Decision
Jul 31, 2000 CMS960174 Order Denying Respondent's Motion to Sever and Preclude Disciplinary Order
Jun 10, 1999 CMS960194 J.C. Bradford & Co. Disciplinary Decision
Jan 18, 2000 CMS960235 Morgan Stanley & Co., Inc., Thomas Anthony Crocamo, Carl DeFelice, Joseph Louis Ferrarese, Peter William Ferriso, Jr., Robert Scott Ranzman, Charles McMichael Simonds, & David Robert Slaine Disciplinary Decision
Jul 9, 1999 CMS960238 Michael B. Jawitz Disciplinary Decision
Dec 23, 1997 CMS960247 In the Matter of Market Regulation Committee, Complainant, vs. Respondent Firm 1 Disciplinary Decision, Redacted Decision
Mar 10, 1998 CMS970026 Final Pre-Hearing Conference Order, Order Granting Respondents' Motion to Adjourn the March 17, 1998 Hearing, Order Rejecting Respondents' Contested Offer of Settlement, and Order Denying the Department of Enforcement's Motion for Partial Summary Disposition Disciplinary Order
Jan 22, 1998 CMS970026 Order Granting the Department of Enforcement's Motion for Telephone Testimony, Denying Respondents' Motion for Use of an Expert Witness and Denying Respondents' Motion to Compel Production of Documents Disciplinary Order
Aug 26, 1998 CMS970026 Hearing Panel Decision in Department of Enforcement v. Olde Discount Corporation and Todd Thomas Wodek Disciplinary Decision
Jun 1, 2000 CMS970027 Jerome E. Rosen Disciplinary Decision
Dec 15, 1997 CMS970028 Order Granting in Part Complainant's Motion to Exclude Witnesses and Amend Exhibit List Disciplinary Order
Jun 3, 1998 CMS970028 Hearing Panel Decision Redacted Decision
Jul 29, 1999 CMS980108 Hearing Panel Decision Redacted Decision
Apr 13, 1999 CMS980108 Order with Respect to Respondent's Motion to Compel Production of Documents Disciplinary Order
Aug 21, 1998 CO5970035 Hearing Panel Decision Redacted Decision
Dec 26, 2000 DFC000003 Rule 9530 Suspension Proceeding DFC000003 Expedited Decision, Rule 9530 Suspension Decisions
Oct 3, 2002 DFC020014 NASD Treasurer, Complainant, v. Respondent Expedited Decision, Rule 9530 Suspension Decisions
Feb 21, 2003 DFC020018 Hearing Panel Decision in NASD Treasurer v. Respondent Disciplinary Decision
Mar 28, 2004 DFC040005 Order Denying Respondent's Motion to Dismiss the Suspension Proceeding Disciplinary Order
Apr 5, 2006 DFC050011 Decision in NASD Treasurer v. Lee Fisher Expedited Decision, Rule 9550 Expedited Decisions
Sep 14, 2006 DFC060004 Order Setting a Pre-Hearing Conference Disciplinary Order
Mar 18, 2015 DFC140002 Order Granting Complainant's Motion to Dismiss Hearing Request Expedited Order
Mar 18, 2015 DFC140002 Order Granting Complainant’s Motion to Dismiss Hearing Request Disciplinary Order
Dec 8, 2016 DFC160001 McBarron Capital, LLC Expedited Decision

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