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 10, 2015||SD-MCDC-031 et al.||Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Raymond James & Associates, Inc.||Statutory Disqualification|
|Aug 10, 2015||SD-MCDC-014 et al.||B.C. Ziegler and Company, Benchmark Securities, LLC, Bernardi Securities, Inc., BOSC, Inc., Central States Capital Markets, LLC, City Securities Corporation, The Baker Group, LP||Statutory Disqualification, Other|
|Aug 10, 2015||SD-MCDC-018 et al.||BMO Capital Markets GKST Inc., BNY Mellon Capital Markets, LLC, Dougherty & Company LLC, George K. Baum & Company, Hutchinson, Shockey, Erley & Co.||Statutory Disqualification, Other|
|Aug 10, 2015||SD-MCDC-026 et al.||Goldman, Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Oppenheimer & Co. Inc., RBC Capital Markets, LLC, Stifel, Nicolaus & Company, Inc.||Statutory Disqualification|
|Aug 10, 2015||SD-MCDC-022 et al.||First National Capital Markets, Inc., L.J. Hart and Company, Inc., Loop Capital Markets LLC, Martin Nelson & Co., Inc., Siebert, Brandford, Shank & Co., LLC, Smith Hayes Financial Services Corporation, Wells Nelson & Associates, LLC||Statutory Disqualification|
|Aug 10, 2015||SD-MCDC-021 et al.||Davenport & Company LLC, Piper Jaffray & Co., Robert W. Baird & Co., Incorporated Stephens Inc., Sterne, Agee & Leach, Inc., William Blair & Company LLC||Statutory Disqualification|
|Mar 25, 2015||SD-2025||ConvergEx Execution Solutions, LLC||Statutory Disqualification, Approvals|
|Feb 26, 2015||SD-2024||G-Trade Services LLC||Statutory Disqualification, Approvals|
|Feb 3, 2015||SD-1865||Guy S. Amico with Newbridge Securities Corp.||Statutory Disqualification, Approvals|
|Jan 30, 2015||SD-1865||Scott H. Goldstein with Newbridge Securities Corp.||Statutory Disqualification, Approvals|
|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|
|Nov 6, 2014||SD-2017||Piper Jaffray & Co.||Statutory Disqualification, Approvals|
|Sep 9, 2014||SD-2012||David S. Thomas, Jr. with Purshe Kaplan Sterling Investments, Inc.||Statutory Disqualification, Approvals|
|Aug 8, 2014||SD-2037||Jason Ginder with National Securities Corp.||Statutory Disqualification, Approvals|
|Apr 14, 2014||SD-2030||George L. Prost with Intercoastal Capital Markets, Inc.||Statutory Disqualification, Approvals|
|Mar 4, 2014||SD-2023||Joel E. Breiter with Oppenheimer & Co., Inc.||Statutory Disqualification, Approvals|