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|
|Apr 24, 2014||2011029760201||Charles Schwab & Company, Inc.||Disciplinary Decision|
|Feb 21, 2013||2011029760201||Hearing Panel Decision Granting in Part and Denying in Part the Parties’ Cross-Motions for Summary Disposition in Departement of Enforcement v. Charles Schwab & Company, Inc.||Disciplinary Decision|
|Apr 5, 2012||2011029760201||Order Denying Respondent’s Motion for Leave to Serve Limited Discovery||Disciplinary Order|
|Jun 26, 2015||2011030072301||Audra Lynn Lalley||Disciplinary Decision|
|Oct 8, 2014||2011030192201||APPEALED: Alfred P. Reeves, III||Disciplinary Decision|
|Apr 15, 2013||2011030192201||Hearing Panel Decision in Department of Enforcement v. Alfred P. Reeves III||Disciplinary Decision|
|Jun 10, 2016||2011030293503||APPEALED: Richard Gomez||Disciplinary Decision|
|Mar 28, 2018||2011030293503||Richard Gomez||Disciplinary Decision|
|Dec 8, 2014||2011030781201||Order (1) Denying Respondent’s Motion to Dismiss, (2) Granting in Part Enforcement’s Motion to Strike, and (3) Directing Respondent to File an Amended Answer||Disciplinary Order|
|Aug 3, 2017||2012030527503||APPEALED: Thaddeus James North||Disciplinary Decision|
|Jul 23, 2015||2012030527503||APPEALED: Thaddeus James North||Disciplinary Decision|
|Oct 17, 2016||2012030564701||APPEALED: Newport Coast Securities, Inc., Douglas A. Leone, and Andre V. LaBarbera||Disciplinary Decision|
|May 23, 2018||2012030564701||Newport Coast Securities, Inc., Andre La Barbera, Douglas Leone||Disciplinary Decision|
|Dec 2, 2014||2012030570301||Calvin B. Grigsby||Disciplinary Decision|
|Jan 6, 2017||2012030724101||Fox Financial Management Corporation, Brian A. Murphy, James E. Rooney, Jr.||Disciplinary Decision|
|Mar 9, 2015||2012030724101||APPEALED: Fox Financial Management Corporation, Brian A. Murphy, and James E. Rooney, Jr.||Disciplinary Decision|
|Jun 3, 2016||2012030731802||APPEALED: William H. Murphy & Co., Inc. and William H. Murphy||Disciplinary Decision|
|Oct 11, 2018||2012030731802||APPEALED: William H. Murphy & Co., Inc., and William H. Murphy||Disciplinary Decision|
|Jan 26, 2017||2012030738501||APPEALED: J.W. Korth and Company||Disciplinary Decision|
|May 8, 2014||2012031142101||Hearing Panel Decision in Department of Enforcement v.John Allan Waldock, Jr.||Disciplinary Decision|
|Mar 10, 2016||2012031496501||Order Denying Respondents’ Motion for Partial Summary Disposition.||Disciplinary Order|
|Sep 26, 2017||2012031748203||William Norris Jordan||Disciplinary Decision|
|Apr 21, 2017||2012032019101||Order Granting in Part and Denying in Part Respondents’ Motion Pursuant to FINRA Rules 8210 and 9252.||Disciplinary Order|
|Apr 4, 2016||20120320803-01||APPEALED: Peter J. Auzers and Shiva Naby||Disciplinary Decision|
|Jul 24, 2017||20120320803-01||Shiva Naby||Disciplinary Decision|