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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
February 20, 2007 2005001305701 Order Denying Respondents' Three Discovery Motions

Related Documents

Disciplinary Order
February 20, 2007 CLI050014 Hearing Panel Decision in Department of Enforcement v. Erik Matz Disciplinary Decision
February 16, 2007 2005000316701 Order Ruling on Respondents' Motions to Strike Department of Enforcement's Exhibits Disciplinary Order
February 16, 2007 E072004044201 Ralph Merhi Disciplinary Decision
February 15, 2007 2005000316701 Order Ruling on Department of Enforcement's (1) Objections to Witnesses and Documents, (2) Motion to Partially Strike Respondents' Pre-Hearing Brief, (3) Motion in Limine, and (4) Motion for Ruling on the Admissibility of Documents and Business Records Disciplinary Order
February 15, 2007 C3A050003 Kenneth Christopher Shelley Disciplinary Decision
February 13, 2007 2005000094001 Order Denying Respondents' Motion for Leave to Offer Expert Testimony Disciplinary Order
February 12, 2007 C02050006 In the Matter of Department of Enforcement, Complainant vs. Respondent Disciplinary Decision, Redacted Decision
February 12, 2007 C06040027 Sterling Scott Lee and Dennis Todd Lloyd Gordon Disciplinary Decision
February 12, 2007 C07040042 John D. Kaweske Disciplinary Decision
February 05, 2007 2005001305701 Order Denying the Respondents' Motion for a More Definite Statement

Related Documents

Disciplinary Order
February 01, 2007 E3A20050065 Order Regarding Respondent's Pre-Hearing Submissions Disciplinary Order
January 23, 2007 C3A040023 John M. Meyers and Brian C. Klein Disciplinary Decision
January 17, 2007 C10040025 John Brigandi Disciplinary Decision
January 08, 2007 C9A040024 Charles C. Fawcett IV Disciplinary Decision
January 03, 2007 C3A040001 Charles A. DaCruz and Thomas J. Linda Disciplinary Decision
January 01, 2007 SD07001 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2007 SD07002 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2007 SD07003 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
January 01, 2007 SD07004 In the Matter of the Association of X Redacted Decision, Statutory Disqualification, Approvals
December 29, 2006 C01040025 Jimmie Lee Griffith Disciplinary Decision
December 28, 2006 2005001819101 Order Granting Complainant's Motion to Strike in Part the Introduction to Respondent's Answer

Related Documents

Disciplinary Order
December 28, 2006 E8A2003084806 Order Granting Complainant's Motion in Limine Disciplinary Order
December 18, 2006 C8A040079 Gregory R. Masceri Disciplinary Decision
December 18, 2006 C9B040080 Morton Bruce Erenstein Disciplinary Decision