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 Decision Proceeding No.sort descending 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
Mar 28, 2018 2011030293503 Richard Gomez Disciplinary Decision
Jun 10, 2016 2011030293503 APPEALED: 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
Jul 23, 2015 2012030527503 APPEALED: Thaddeus James North Disciplinary Decision
Aug 3, 2017 2012030527503 APPEALED: Thaddeus James North Disciplinary Decision
May 23, 2018 2012030564701 Newport Coast Securities, Inc., Andre La Barbera, Douglas Leone Disciplinary Decision
Oct 17, 2016 2012030564701 APPEALED: Newport Coast Securities, Inc., Douglas A. Leone, and Andre V. LaBarbera Disciplinary Decision
Dec 2, 2014 2012030570301 Calvin B. Grigsby Disciplinary Decision
Mar 9, 2015 2012030724101 APPEALED: Fox Financial Management Corporation, Brian A. Murphy, and James E. Rooney, Jr. Disciplinary Decision
Jan 6, 2017 2012030724101 Fox Financial Management Corporation, Brian A. Murphy, James E. Rooney, Jr. Disciplinary Decision
Oct 11, 2018 2012030731802 APPEALED: William H. Murphy & Co., Inc., and William H. Murphy Disciplinary Decision
Jun 3, 2016 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

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