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|
|Dec 11, 2017||SD-2144||Goldman, Sachs & Co.||Statutory Disqualification, Approvals|
|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, Approvals|
|Oct 25, 2017||2014042291901||APPEALED: Gopi K. Vungarala||Disciplinary Decision|
|Dec 17, 1999||C02980051||Gordon Kerr||Disciplinary Decision|
|Apr 19, 1999||C01970025||Gregory Paul Maggipinto||Disciplinary Decision|
|Dec 18, 2006||C8A040079||Gregory R. Masceri||Disciplinary Decision|
|Mar 7, 2012||2008012137601||Gregory Richard Imbruce||Disciplinary Decision|
|May 13, 2004||C9A020052||Guang Lu||Disciplinary Decision|
|Feb 3, 2015||SD-1865||Guy S. Amico with Newbridge Securities Corp.||Statutory Disqualification, Approvals|
|Nov 6, 2017||2015048048801||Hank M. Werner and Legend Securities, Inc.||Disciplinary Decision|
|Feb 5, 1999||C02960001||Harold B. Gallison, Jr., Gregory K. Mehlmann, Robert C. Weaver, Gerald R. Budke, Christopher S. Knight, La Jolla Capital Corporation||Disciplinary Decision|
|Mar 2, 2012||20060051788-01||Harrison A. Hatzis||Disciplinary Decision|
|Jul 26, 2010||2005000835801||Harry Friedman||Disciplinary Decision|
|Mar 30, 1999||C02960039||Harry Gliksman & William Gallagher||Disciplinary Decision|
|Dec 18, 2012||2009018068701||Harry W. Hunt||Disciplinary Decision|
|Oct 6, 2008||2005001305701||Harvest Capital Investments, LLC and Dennis Cotto||Disciplinary Decision|
|Dec 8, 2010||2007007151101||Hearing Decision in Department of Enforcement v. Merrimac Corporate Securities, Inc.||Disciplinary Decision|
|Mar 14, 1999||CAF980086||Hearing Panel Decision||Redacted Decision|
|Apr 12, 1999||C10980054||Hearing Panel Decision||Redacted Decision|
|Aug 13, 1999||C9A980041||Hearing Panel Decision||Redacted Decision|
|May 7, 1999||CAF980094||Hearing Panel Decision||Redacted Decision|
|Jun 3, 1998||CMS970028||Hearing Panel Decision||Redacted Decision|
|May 6, 1999||CAF980080||Hearing Panel Decision||Redacted Decision|
|Nov 18, 1999||C8A990015||Hearing Panel Decision||Redacted Decision|
|Dec 23, 1998||C8A980045||Hearing Panel Decision||Redacted Decision|