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.
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|
|June 05, 2019||2017053428201||APPEALED: DreamFunded Marketplace, LLC and Manuel Fernandez||Disciplinary Decision|
|June 04, 2019||2016050137503||Order Denying Respondents’ Motion for More Definite Statement||Disciplinary Order|
|May 23, 2019||2014039285401||APPEALED: Southeast Investments, N.C., Inc. & Frank Harmon Black||Disciplinary Decision|
|May 22, 2019||2012030738501||APPEALED: J.W. Korth and Company||Disciplinary Decision|
|May 15, 2019||2015048362402||John Anthony Vedovino||Disciplinary Decision|
|May 15, 2019||2016052347901||Austin Wayne Morton||Disciplinary Decision|
|May 14, 2019||2017053382401||Order on Enforcement’s Objections to Respondents’ Proposed Witness List and Exhibits and Motion in Limine||Disciplinary Order|
|May 08, 2019||2016050938301||APPEALED: Michael J. Clarke||Disciplinary Decision|
|May 07, 2019||2016051493704||Order on Respondent’s Motion Pursuant to Rule 9253||Disciplinary Order|
|May 03, 2019||FPI190001, FPI190002||Order Denying Respondents’ Motion to Conduct Hearing in Person, Regulatory Operations v. Alpine and Scotsdale||Expedited Order|
|May 02, 2019||2015045312501||Order Granting Parties’ Motions for Leave to Permit Expert Testimony||Disciplinary Order|
|May 02, 2019||SD-2140||Stifel, Nicolaus & Co., Inc.||Statutory Disqualification|
|April 23, 2019||2015045312501||Order Directing Parties to Meet and Confer||Disciplinary Order|
|April 11, 2019||2016050025401||Frederick David Holloway||Disciplinary Decision|
|April 05, 2019||2016050137503||Order Regarding Respondents’ Motion For Extension Of Time To Answer||Disciplinary Order|
|April 01, 2019||2016048393501||Order Granting Motion for Leave to File First Amended Complaint and Index to the First Amended Complaint||Disciplinary Order|
|March 28, 2019||2016052503101||Order Denying Respondent’s Motion for Summary Disposition||Disciplinary Order|
|March 18, 2019||2016047565702||Dakota Securities & Bruce Zipper||Disciplinary Decision|
|March 15, 2019||SD-2195||Scott Coy||Statutory Disqualification, Denials|
|March 13, 2019||2016052503101||Order Granting in Part and Denying in Part Respondent’s Rule 9252 Request||Disciplinary Order|
|March 13, 2019||2017052760001||Order Regarding Pre-Hearing Submissions||Disciplinary Order|
|March 11, 2019||2010022977801r||David B. Tysk||Disciplinary Decision|
|March 07, 2019||SD-2148||Guy Wyser-Pratte||Statutory Disqualification, Denials|
|March 05, 2019||2013035345701||APPEALED: Titan Securities, Brad Brooks and Richard Demetriou||Disciplinary Decision|
|March 05, 2019||2014039839101||Jim Jinkook Seol||Disciplinary Decision|