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 ascending Proceeding No. Title Type
Feb 25, 1998 CAF970002 Order Regarding Motion of Respondents and Enforcement's Motion to Strike Disciplinary Order
Feb 19, 1998 C07930034 Escalator Securities, Inc., & Howard A. Scala Disciplinary Decision
Feb 17, 1998 C9B970016 Order Regarding Production Under Rule 9251 Disciplinary Order
Feb 5, 1998 CAF970002 Order Regarding Severance Disciplinary Order
Feb 3, 1998 CMS960085 James T. Patten & Greater Metropolitan Investment Services, Inc. Disciplinary Decision
Feb 2, 1998 C04970029 Order Staying Proceeding Disciplinary Order
Jan 29, 1998 CAF970011 Order Denying Motion to Disqualify Counsel for Recusal of Hearing Officer Disciplinary Order
Jan 29, 1998 CAF970011 Order Denying Motion to Disqualify Counsel for Complainant and Hearing Panelists Disciplinary Order
Jan 27, 1998 CAF970011 Order Granting Department of Enforcement's Motion to Amend the Complaint Disciplinary Order
Jan 27, 1998 C3A970067 Order Granting Department of Enforcement's Motion for Telephone Testimony Disciplinary Order
Jan 23, 1998 C3B960004 Otto M. Bruun Disciplinary Decision
Jan 23, 1998 C02960042 Stephen J. Gluckman Disciplinary Decision
Jan 23, 1998 C07960009 James S. Pritula Disciplinary Decision
Jan 22, 1998 CMS970026 Order Granting the Department of Enforcement's Motion for Telephone Testimony, Denying Respondents' Motion for Use of an Expert Witness and Denying Respondents' Motion to Compel Production of Documents Disciplinary Order
Jan 22, 1998 C07960091 Robert L. Wallace Disciplinary Decision
Jan 21, 1998 C04970029 Order Establishing Procedure for Arriving at Stipulations and Re-Scheduling Pre-Hearing Conference Disciplinary Order
Jan 21, 1998 C10970176 Order as to Respondent Disciplinary Order
Jan 20, 1998 C10970161 Order Disciplinary Order
Jan 20, 1998 C10970158 Order Denying Motion for More Definite Statement Disciplinary Order
Jan 20, 1998 C06950004 Clinger & Co., Inc., & Norman E. Clinger Disciplinary Decision
Jan 20, 1998 C02960031 Donna R. Roach Disciplinary Decision
Jan 16, 1998 C04960004 Tammy S. Kwikkel-Elliott Disciplinary Decision
Jan 15, 1998 C10970163 Order to Show Cause Disciplinary Order
Jan 13, 1998 C10970141 Order Denying Motion for Reconsideration of Order Setting Deadline for Filing Motion for Entry of Default Decision Disciplinary Order
Jan 12, 1998 C3A970074 Order Setting Second Pre-Hearing Conference Disciplinary Order