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.
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.||Title||Type|
|Aug 5, 2016||ARB160012||Fairbridge Capital Markets||Expedited Decision|
|Aug 4, 2016||FPI160002||Robert DePalo||Expedited Decision|
|Aug 3, 2016||2011025851501||APPEALED: KCD Financial, Inc.||Disciplinary Decision|
|Aug 2, 2016||FPI160006||Dawn Bennett||Expedited Decision|
|Jul 28, 2016||2013035817701||Protective Order Governing Personal Confidential Information||Disciplinary Order|
|Jul 28, 2016||20120342425-01||Order Concerning Parties’ Motion for Leave to Present Expert Testimony||Disciplinary Order|
|Jul 25, 2016||FR160001||Merriman Capital Inc.||Expedited Decision|
|Jul 21, 2016||2010022601501||Jack Brian Weinstock||Disciplinary Decision|
|Jul 20, 2016||SD-2044||Xavier Capdepon||Statutory Disqualification, Denials|
|Jul 20, 2016||2009020465801||APPEALED: Keith D. Geary||Disciplinary Decision|
|Jul 19, 2016||2011028502101||North Woodward Financial Corp. and Douglas A. Troszak||Disciplinary Decision|
|Jul 18, 2016||2012033351801||Paolo Franca Iida||Disciplinary Decision|
|Jul 18, 2016||2012034389202||APPEALED: Bernard G. McGee||Disciplinary Decision|
|Jul 15, 2016||SD-2096||Louis A. Woolf with Voya Financial Advisors, Inc.||Statutory Disqualification, Approvals|
|Jul 11, 2016||FPI160004||Fairbridge Capital Markets||Expedited Decision|
|Jun 28, 2016||2013038418201||Joseph N. Barnes, Sr.||Disciplinary Decision|
|Jun 17, 2016||SD-2026||RBS Securities, Inc.||Statutory Disqualification|
|Jun 10, 2016||2011030293503||APPEALED: Richard Gomez||Disciplinary Decision|
|Jun 8, 2016||SD-2088||James D. Goodland with Spire Securities LLC||Statutory Disqualification, Approvals|
|Jun 3, 2016||2013035211801||APPEALED: David A. Elgart||Disciplinary Decision|
|Jun 3, 2016||2012030731802||APPEALED: William H. Murphy & Co., Inc. and William H. Murphy||Disciplinary Decision|
|May 24, 2016||2014043020901||Order Ruling on Witness Objections||Disciplinary Order|
|May 20, 2016||2013038333001||Order Denying Respondent’s Motion for Request for Documents and Information||Disciplinary Order|
|May 20, 2016||SD-2027||APPEALED: Christopher Cota with Capital Financial Services, Inc.||Statutory Disqualification, Denials|
|May 16, 2016||2010022977801||APPEALED: David B. Tysk||Disciplinary Decision|