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 descending Proceeding No. Title Type
Apr 21, 1999 C9B960013 Steven D. Goodman Disciplinary Decision
Apr 27, 1999 C11970032 Order Granting Motion to Strike Affirmative Defenses Disciplinary Order
Apr 28, 1999 C02980070 Hearing Panel Decision in Department of Enforcement v. Frederick D. Smith Disciplinary Decision
Apr 28, 1999 C8A960054 In the Matter of District Business Conduct Committee For District No. 8, Complainant, vs. Respondent Firm 1, Respondent 2, Respondent 3, and Respondent 4 Disciplinary Decision, Redacted Decision
May 6, 1999 C07980021 Hearing Panel Decision Redacted Decision
May 6, 1999 CAF980080 Hearing Panel Decision Redacted Decision
May 7, 1999 CAF980094 Hearing Panel Decision Redacted Decision
May 7, 1999 C8A990015 Order Denying Respondent's Motion for Separate Proceedings and Stay of Action Disciplinary Order
May 7, 1999 CAF980031 Order Denying Motions to Sever Disciplinary Order
May 13, 1999 C07980027 Stuart G. Horowitz Disciplinary Decision
May 13, 1999 C10960208 A.S. Goldmen & Co., Inc., Anthony J. Marchiano, Stuart E. Winkler, & Stacy Meyers Disciplinary Decision
May 19, 1999 C05990006 Order Dismissing Respondent for Lack of Jurisdiction Redacted Decision
May 21, 1999 C3A980069 Amended Hearing Panel Decision in Department of Enforcement v. Michael A. Usher Disciplinary Decision
Jun 1, 1999 ARB980026 Non-Summary Suspension Proceeding ARB980026 Expedited Decision, Non-Summary Proceeding
Jun 1, 1999 ARB990008 Non-Summary Suspension Proceeding ARB990008 Expedited Decision, Non-Summary Proceeding
Jun 4, 1999 C3A950031 In the Matter of District Business Conduct Committee For District No. 3 Complainant, vs. Respondent Firm 1 and Respondent 2 Disciplinary Decision, Redacted Decision
Jun 10, 1999 CMS960194 J.C. Bradford & Co. Disciplinary Decision
Jun 14, 1999 C10970176 Robert Fitzpatrick Disciplinary Decision
Jun 15, 1999 C3A970031 Daniel S. Hellen Disciplinary Decision
Jun 18, 1999 CAF970011 Hearing Panel Decision in Department of Enforcement v. Monroe Parker Securities, Inc. Disciplinary Decision
Jun 18, 1999 C10980070 Hearing Panel Decision in Department of Enforcement v. John J. Lee Disciplinary Decision
Jun 21, 1999 CAF980002 Order Denying Respondents' Motion to Compel Production of Documents Disciplinary Order
Jun 25, 1999 CAF980022 Hearing Panel Decision in Department of Enforcement v. Coleman & Company Securities, Inc. and Aaron J. Yorke, IV Disciplinary Decision
Jun 28, 1999 CAF990007 Order Granting Respondents' Motion for Reconsideration Disciplinary Order
Jun 28, 1999 C8A970015 Kevin Lee Otto Disciplinary Decision

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