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 Decisionsort ascending Proceeding No. Title Type
Nov 8, 2017 2014041985401 APPEALED: James Larkin Powers Disciplinary Decision
Nov 8, 2017 2014040809501 Eddie Basora, Jr. Disciplinary Decision
Nov 6, 2017 2015048048801 Hank M. Werner and Legend Securities, Inc. Disciplinary Decision
Oct 25, 2017 2014042291901 APPEALED: Gopi K. Vungarala Disciplinary Decision
Oct 5, 2017 2013038986001 APPEALED: Richard Allen Riemer, Jr. Disciplinary Decision
Oct 3, 2017 ARB170022 Craig Arnold Sorenson Expedited Decision
Oct 2, 2017 SD-2129 APPEALED: Bruce Zipper Disciplinary Decision
Oct 2, 2017 2013037401001 APPEALED: Stanley Clayton Niekras Disciplinary Decision
Sep 26, 2017 2012031748203 William Norris Jordan Disciplinary Decision
Sep 6, 2017 2014040476901 APPEALED: C.L. King and Gregg Alan Miller Disciplinary Decision
Aug 25, 2017 ARB170007 Timothy S. Fannin Expedited Decision
Aug 16, 2017 2014043020901 Matthew J. Dodds Disciplinary Decision
Aug 3, 2017 2012030527503 APPEALED: Thaddeus James North Disciplinary Decision
Aug 2, 2017 2014042690502 Stephen Brown and James Goetz Disciplinary Decision
Jul 31, 2017 2015044823501 & 2015044823502 Edward Beyn, Craig Scott Taddonio, and Brent Morgan Porges Disciplinary Decision
Jul 27, 2017 SD-2130 APPEALED: Robert J. Escobio Statutory Disqualification
Jul 24, 2017 20120320803-01 Shiva Naby Disciplinary Decision
Jul 24, 2017 2012034719701 APPEALED: Paul E. Taboada Disciplinary Decision
Jul 20, 2017 2015044444801 Glenn Robert King Disciplinary Decision
Jul 20, 2017 2012034936005 David Joseph Escarcega Disciplinary Decision
Jul 20, 2017 2011025675501r APPEALED: Kimberly Springsteen-Abbott Disciplinary Decision
Jul 14, 2017 2014042156101 William Morgan Ditty Disciplinary Decision
Jul 10, 2017 2015044489701 Kory Penland Keath Disciplinary Decision
Jun 20, 2017 2014041724601 APPEALED: Scottsdale Capital Advisors Corporation, John J. Hurry, Timothy B. Diblasi, and D. Michael Cruz Disciplinary Decision
Jun 16, 2017 2013037709301 Order Establishing Procedures Regarding Treatment of SAR Information Disciplinary Order

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