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
Jul 24, 1998 C07970045 Ted D. Wells Disciplinary Decision
Aug 31, 2005 CMS020247 Terrance Yoshikawa Disciplinary Decision
Dec 13, 2016 2014040501801 Texas E&P Partners, Inc., F/K/A Chestnut Exploration Partners, Inc., F/K/A Chestnut Energy Partners, Inc. and Mark A. Plummer Disciplinary Decision
Dec 1, 2015 2010025087302 APPEALED: Thaddeus J. North Disciplinary Decision
Mar 15, 2017 2010025087302 APPEALED: Thaddeus J. North Disciplinary Decision
Aug 3, 2017 2012030527503 APPEALED: Thaddeus James North Disciplinary Decision
Jul 23, 2015 2012030527503 APPEALED: Thaddeus James North Disciplinary Decision
May 2, 2014 2008012925001 APPEALED: The Dratel Group, Inc. and William M. Dratel Disciplinary Decision
May 6, 2015 2009016317701 The Dratel Group, Inc. and William M. Dratel Disciplinary Decision
Jun 28, 2006 FPI060005 The Reid Group LLC Expedited Decision, Rule 9550 Expedited Decisions
Jan 13, 1999 C8A970070 Theodore L. Pittman, III Disciplinary Decision
Jan 29, 2015 SD-2050 Theodore Rothman with First Allied Securities, Inc. Statutory Disqualification, Approvals
Dec 22, 2014 SD-2042 Thomas Core with Aegis Capital Corp. Statutory Disqualification, Approvals
Jan 15, 2016 2012033362101 APPEALED: Thomas Edmund Connors Disciplinary Decision
Jan 10, 2017 2012033362101 Thomas Edmund Connors Disciplinary Decision
Feb 15, 2013 2008014621701 Thomas Weisel Partners, LLC and Stephen H. Brinck, Jr. Disciplinary Decision
Oct 27, 2005 C8A030099 Timothy J. Duma Disciplinary Decision
Apr 25, 2003 CAF010013 Timothy J. Ryan Disciplinary Decision
May 17, 2001 C8A990025 Timothy James Fergus, Frank Thomas Devine, & Richard Alan Blake Disciplinary Decision
Feb 4, 2013 2009017439601 Timothy Joseph Golonka Disciplinary Decision
Aug 25, 2017 ARB170007 Timothy S. Fannin Expedited Decision
Feb 2, 2018 2015046759201 APPEALED: Todd B. Wyche Disciplinary Decision
May 18, 2005 C8A030068 Todd Grafenauer Disciplinary Decision
Aug 6, 1999 C06910024 Toney L. Reed Disciplinary Decision
May 21, 2003 FPI010004 Toni Valentino Disciplinary Decision

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