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 ascending Title Type
Aug 19, 2010 2006003834901 Moustafa M. Zayed Disciplinary Decision
Dec 19, 2008 2006003825001 Hearing Panel Decision in Department of Enforcement v. Joseph William Hagan Disciplinary Decision
Dec 18, 2008 2006003738501 Hearing Panel Decision in Department of Enforcement v. Mission Securities Corporation and Craig M. Biddick Disciplinary Decision
Feb 25, 2010 2006003738501 Mission Securities Corporation and Craig M. Biddick Disciplinary Decision
Aug 31, 2009 2006003672401 Hearing Panel Decision in Department of Enforcement v. Patrick F. Harte, Jr. Disciplinary Decision
Sep 28, 2007 200500631501 Bryan L. Claggett Disciplinary Decision
May 6, 2010 2005003610701 Extended Hearing Panel Decision in Department of Enforcement v. William J. Murphy, Carl M. Birkelbach, and Respondent Firm Disciplinary Decision
Oct 20, 2011 2005003610701 William J. Murphy, Carl M. Birkelbach, and Birkelbach Investment Securities, Inc. Disciplinary Decision
Sep 19, 2006 2005003490801 Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht Disciplinary Decision
Feb 26, 2008 2005003437102 Order Denying Motion for Leave to Offer Expert Testimony Disciplinary Order
Feb 15, 2008 2005003437102 Order Denying Respondent's Motion to Compel Production of Documents Disciplinary Order
Apr 4, 2008 2005003437102 Order Granting Department of Enforcement's Motion to Strike Respondent's Unclean Hands Affirmative Defense Disciplinary Order
Apr 4, 2008 2005003437102 Order Denying Respondent's Motion for Summary Disposition Disciplinary Order
Apr 4, 2008 2005003437102 Order Granting Respondent's Motion Pursuant to Rule 9252 to Compel Testimony at Hearing Disciplinary Order
May 6, 2011 2005003437102 Michael Lee Bullock Disciplinary Decision
Apr 17, 2009 2005003437102 Extended Hearing Panel Decision in Department of Enforcement v. Michael Lee Bullock Disciplinary Decision
Mar 19, 2009 2005003295801 Amended Extended Hearing Panel Decision in Department of Enforcement v. Andrew W. Quinn Disciplinary Decision
Aug 27, 2008 2005003188901 Order Denying Respondent's Motion to Compel Production of Documents Disciplinary Order
Jan 29, 2009 2005003188901 Amended Hearing Panel Decision in Department of Enforcement v. Richard G. Cody Disciplinary Decision
May 10, 2010 2005003188901 Richard G. Cody Disciplinary Decision
Jun 19, 2007 20050025930 Hearing Panel Decision in Department of Enforcement v. Carolyn S. Everhard Disciplinary Decision
Apr 20, 2007 2005002570601 Hearing Panel Decision in Department of Enforcement v. Paul Douglas Paratore Disciplinary Decision
Mar 7, 2008 2005002570601 Paul Douglas Paratore Disciplinary Decision
Dec 30, 2011 2005002244102 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Apr 8, 2010 200500224102 Order Limiting the Dissemination of Personal, Confidential Information Disciplinary Order

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