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Adjudication & 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. Title Type
May 06, 2010 2005003610701 Extended Hearing Panel Decision in Department of Enforcement v. William J. Murphy, Carl M. Birkelbach, and Respondent Firm

Related Documents

Disciplinary Decision
May 04, 2010 2007007989901 Hearing Panel Decision in Department of Enforcement v. Respondent Redacted Decision
May 03, 2010 2006006890801 CMG Institutional Trading LLC and Shawn D. Baldwin Disciplinary Decision
April 30, 2010 2008013503101 Order Denying Respondent's Motions for Leave to Seek and Retain Counsel and to Adjourn and Retain Counsel Disciplinary Order
April 23, 2010 E8A2004072203 Jonathan M. Skiba Disciplinary Decision
April 20, 2010 2006003916901 Hearing Panel Decision in Department of Enforcement v. Richard Michael Bowers Disciplinary Decision
April 14, 2010 2007009403801 Hearing Panel Decision in Department of Enforcement v. Stephen W. Wilson

Related Documents

Disciplinary Decision
April 08, 2010 200500224102 Order Limiting the Dissemination of Personal, Confidential Information Disciplinary Order
March 22, 2010 2006005178801 Hearing Panel Decision in Department of Enforcement v. Harrison A. Hatzis Disciplinary Decision
March 18, 2010 2007007377801 Hearing Panel Decision in Department of Enforcement v. Noble B. Trenham Disciplinary Decision
March 16, 2010 2007011250901 Hearing Panel Decision in Department of Enforcement v. Angela Dionne Reed Disciplinary Decision
March 05, 2010 E052005007501 Hearing Panel Decision in Department of Enforcement v. Sterne, Agee & Leach, Inc. Disciplinary Decision
March 03, 2010 CLGO50021 John Patrick Leighton and Kenneth D. Pasternak Disciplinary Decision
February 26, 2010 2005001729501 Gerald J. Kesner Disciplinary Decision
February 25, 2010 2006003738501 Mission Securities Corporation and Craig M. Biddick Disciplinary Decision
February 25, 2010 20080121376 Order Denying Motion to Dismiss Disciplinary Order
January 22, 2010 2008013087201 Hearing Panel Decision in Department of Enforcement v. Bradford Orosey Disciplinary Decision
January 12, 2010 2008013391701 Hearing Panel Decision in Department of Enforcement v. Trent Tremayne Hughes Disciplinary Decision
January 01, 2010 SD10001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
January 01, 2010 SD10002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2010 SD10003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2010 SD10004 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
January 01, 2010 SD10005 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2010 SD10006 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Denials
December 30, 2009 2007009472201 Hearing Panel Decision in Department of Enforcement v. Warren William Wall Disciplinary Decision