Adjudication & Decisions
When FINRA determines that violations of securities rules have occurred and formal disciplinary action is necessary, the Enforcement 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|
|November 11, 2019||ARB190024||Jonathan R. Lake||Expedited Decision|
|November 06, 2019||2018059510201||Case Management and Scheduling Order||Disciplinary Order|
|November 01, 2019||FPI190006||KJM Securities||Expedited Decision|
|October 02, 2019||2014040476901||C.L. King & Associates, Inc. and Gregg Alan Miller||Disciplinary Decision|
|September 30, 2019||2016050924601||Bradley C. Reifler||Disciplinary Decision|
|September 29, 2019||2016049321302||Order Granting Consent Motion to Sequester||Disciplinary Order|
|September 12, 2019||2018059545201||Case Management and Scheduling Order||Disciplinary Order|
|August 23, 2019||2018056848101||APPEALED: Thomas Lee Johnson||Disciplinary Decision|
|August 22, 2019||2016050938301||Charles Edwin Taylor, Jodi Oyler Padgett, and John Lodge Farmer||Disciplinary Decision|
|August 15, 2019||FPI190005||Myron K. Gruenberg||Expedited Decision|
|August 15, 2019||FPI190001 - FPI190002||Alpine Securities Corp. and Scottsdale Capital Advisors Corp.||Expedited Decision|
|August 07, 2019||2017052871401||APPEALED: William James Potter||Disciplinary Decision|
|August 07, 2019||2016051615301||APPEALED: Partho S. Ghosh||Disciplinary Decision|
|August 01, 2019||2015045312501||Supplemental Order Re: Denial of Second Motion to Stay||Disciplinary Order|
|July 30, 2019||2016049085401||Robert Charles McNamara||Disciplinary Decision|
|July 26, 2019||2015045254501||Richard O. White||Disciplinary Decision|
|July 11, 2019||2017052760001||APPEALED: Nancy Kimball Mellon||Disciplinary Decision|
|July 10, 2019||2015045312501||Order Regarding Discovery||Disciplinary Order|
|July 08, 2019||2017054405401||Order Denying Respondent William Kielczewshi’s Request for the Issuance of a Request for Documents||Disciplinary Order|
|July 01, 2019||2015045312501||Order Establishing Procedures Regarding Treatment of SAR Information||Disciplinary Order|
|June 25, 2019||2016051493704||Omnibus Order on Pre-Hearing Motions||Disciplinary Order|
|June 19, 2019||2016050957901||Order Granting Respondents’ Rules 9252 and 9253 Motions||Disciplinary Order|
|June 19, 2019||2016050957901||Order Granting Enforcement’s Motion for Leave to Offer Expert Testimony||Disciplinary Order|
|June 14, 2019||2016048393501||Order Denying in Part and Granting in Part Respondents’ Motion to Compel Production of Metadata||Disciplinary Order|
|June 14, 2019||2015047005801||APPEALED: Brian Colin Doherty||Disciplinary Decision|