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
Jan 8, 1998 C10970172 Order Denying Respondent's Request for Indefinite Postponement Disciplinary Order
Jan 7, 1998 C8A960029 Bruce L. Pecaro Disciplinary Decision
Jan 7, 1998 C8A960029 In the Matter of District Business Conduct Committee For District No. 8 Complainant, vs. Respondent 1 Disciplinary Decision, Redacted Decision
Jan 6, 1998 C02950044 Lori Sue Koppel-Heath Disciplinary Decision
Jan 2, 1998 C10970164 Pre-Hearing Scheduling Order and Rulings on Respondent's Discovery Motion Disciplinary Order
Jan 2, 1998 C10970158 Order Denying Motion to Compel Discovery Disciplinary Order
Jan 1, 1998 SD98002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 1998 SD98005 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 1998 SD98006 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 1998 SD98007 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 1998 SD98008 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 1998 SD98001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 1998 SD98003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 1998 SD98004 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 1998 SD98009 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Dec 31, 1997 C07930034 Escalator Securities, Inc., & Howard A. Scala Disciplinary Decision
Dec 29, 1997 C3A950073 In the Matter of District Business Conduct Committee for District No. 3, Complainant, vs. Respondent Firm 1, Respondent 2, and Respondent 3 Disciplinary Decision, Redacted Decision
Dec 29, 1997 CAF970002 Order Regarding Respondent Motion for an Extension of Time to Answer Disciplinary Order
Dec 26, 1997 CAF970001 Order Regarding Motion for Judgment on the Pleadings Disciplinary Order
Dec 26, 1997 CAF970001 Order Regarding Motion to Strike Affirmative Defenses Disciplinary Order
Dec 23, 1997 CMS960247 In the Matter of Market Regulation Committee, Complainant, vs. Respondent Firm 1 Disciplinary Decision, Redacted Decision
Dec 22, 1997 C9A970019 Nicholas A. Rudi Disciplinary Decision
Dec 19, 1997 C01970032 Order Striking Answer Filed on Behalf of and Directing the Department of Enforcement to Send a Second Notice of Complaint Disciplinary Order
Dec 19, 1997 C10970172 Order to Show Cause Why Respondents Should Not Be Held in Default to Appear at at Pre-Hearing Conference Disciplinary Order
Dec 18, 1997 C05970037 Order Granting Motion for Consolidation of Disciplinary Proceedings Disciplinary Order

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