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
May 12, 2009 2005000075703 Amended Extended Hearing Panel Decision in Department of Enforcement v. Midas Securities LLC, World Trade Financial Corporation, Jason Troy Adams, Frank Edward Brickell, Jay S. Lee and Rodney Preston Michel Disciplinary Decision
Jun 13, 2007 20050000720-02 Order Prohibiting Use of Subpoenas Disciplinary Order
Dec 11, 2007 20050000720-02 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
Jul 30, 2007 20050000720-02 Order Overruling the Parties' Objections to Exhibits and Witnesses Disciplinary Order
Jun 26, 2007 20050000720-02 Order Denying Respondent 2's Motion to Compel Production of Documents and Directing Respondent 2 to Supplement His Motion for a Rule 9252 Order Disciplinary Order
May 3, 2007 2005000029202 Initial Case-Management Order Disciplinary Order
Mar 30, 2007 20042000056-01 Hearing Panel Decision in Department of Market Regulation v. Respondent Redacted Decision
Oct 9, 2006 20042000056-01 Order Deferring Ruling on Motion for Summary Disposition Disciplinary Order
May 28, 2010 200011592201 Order Denying Respondents' Motion for Leave to Offer Expert Testimony Disciplinary Order
Dec 22, 2003 03-03 Hearing Panel Decision as to Respondent Redacted Decision
Sep 8, 2003 03-02 Hearing Panel Decision as to Respondent Redacted Decision
Aug 19, 2003 03-01 Hearing Panel Decision as to Respondent Redacted Decision