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
Jan 1, 2000 SD00012 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
Jan 1, 2000 SD00002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00007 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00010 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 1, 2000 SD00013 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
Jan 4, 2000 C10990121 Order Denying Enforcement's Motion For Summary Disposition Disciplinary Order
Jan 13, 2000 C02990017 Hearing Panel Decision in Department of Enforcement v. Dennis Frank Riggi Disciplinary Decision
Jan 13, 2000 C3A990050 Hearing Panel Decision in Department of Enforcement v. Jim Newcomb Disciplinary Decision
Jan 18, 2000 CMS960235 Morgan Stanley & Co., Inc., Thomas Anthony Crocamo, Carl DeFelice, Joseph Louis Ferrarese, Peter William Ferriso, Jr., Robert Scott Ranzman, Charles McMichael Simonds, & David Robert Slaine Disciplinary Decision
Jan 18, 2000 C02990052 Order Granting Enforcement's Motion for Leave to Offer Telephone Testimony Disciplinary Order
Jan 31, 2000 C9A990007 Order Granting Motion for Order Permitting Certain Witnesses to Have Counsel Present Disciplinary Order
Feb 7, 2000 CMS950041 In the Matter of Market Regulation Committee, Complainant, vs. Respondent 1 and Respondent Firm 2 Disciplinary Decision, Redacted Decision
Feb 8, 2000 C02990034 Hearing Panel Decision in Department of Enforcement v. I.C. Rideau, Lyons, & Co., Inc., Lamar A. Lyons, Sr., and Joyce A. Green Disciplinary Decision
Feb 11, 2000 CAF980031 Hearing Panel Decision as to Respondent Redacted Decision
Feb 16, 2000 C02980024 Hearing Panel Decision in Department of Enforcement v. Robert Joseph Kernweis, William Pohn Willis, Arnold Hinsdale Kraus, and Keith Allen Dieterich Disciplinary Decision
Feb 17, 2000 C10990024 Hearing Panel Decision in Department of Enforcement v. Averell Golub Disciplinary Decision
Mar 1, 2000 C05990026 Order Rejecting Contested Offer of Settlement Disciplinary Order
Mar 6, 2000 C8B990036 Hearing Panel Decision in Department of Enforcement v. Samuel Wereb Disciplinary Decision
Mar 6, 2000 C02990042 Hearing Panel Decision in Department of Enforcement v. Robert Tretiak Disciplinary Decision
Mar 9, 2000 C3A990031 Hearing Panel Decision in Department of Enforcement v. Charles W. Testino Disciplinary Decision
Mar 9, 2000 C8A990032 Order Vacating Default Against Respondent, Granting Complainant Leave to Re-Serve the Complaint, and Setting a Briefing Schedule on the Issue of Jurisdiction Disciplinary Order
Mar 10, 2000 C02980085 Hearing Panel Decision in Department of Enforcement v. Robert Tretiak Disciplinary Decision
Mar 10, 2000 C3A990067 Order Denying Respondent Second Motion for More Definite Statement Disciplinary Order
Mar 19, 2000 C10990014 Hearing Panel Decision in Department of Enforcement v. Stephen Earl Prout Disciplinary Decision

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