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|
|December 15, 2006||C02050006||In the Matter of the Association of X||Redacted Decision|
|December 15, 2006||2005000315901||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|December 12, 2006||E8A20050252||Hearing Panel Decision in Department of Enforcement vs. CMG Institutional Trading, LLC and Shawn D. Baldwin||Disciplinary Decision|
|November 16, 2006||2005000316701||Order (1) Granting Complainant's Motion in Limine; (2) Denying Complainant's Motion to Sequester Witnesses, Without Prejudice; (3) Denying Respondents' Motions to Dismiss; (4) Denying Respondents' Motion to Strike; (5) Granting, in Part, Respondents' Motion To Preclude; (6) Denying, in Part, and Deferring, in Part, Respondents' Motion For Leave to Present Expert Testimony and (7) Denying Respondents' Motion for Leave to File a Compilation of Motions, Briefs and Rulings||Disciplinary Order|
|November 14, 2006||C8A050060||Hearing Panel Decision in Department of Enforcement vs. Karen Hill||Disciplinary Decision|
|November 09, 2006||2005000316701||Order Denying Respondents' Request That the Deputy Chief Hearing Officer Not Exercise Authority Pursuant to Rule 9235(b)||Disciplinary Order|
|November 09, 2006||EAF0300770001||Order For Sequestration of Witnesses||Disciplinary Order|
|November 07, 2006||E1020040926-01||Order Precluding the Respondents from Presenting Witnesses at the Hearing, Other Than Respondent 2||Disciplinary Order|
|November 01, 2006||EAF0400300001||Order Regarding Hearing Procedures||Disciplinary Order|
|October 31, 2006||2005000127502||Order Following Final Pre-Hearing Conference Modifying Order Precluding Respondents from Introducing Evidence at the Hearing and Dismissing the Third Cause of Complaint||Disciplinary Order|
|October 26, 2006||CAF040058||Hearing Panel Decision in Department of Enforcement vs. Andrew P. Gonchar and Polyvios T. Polyviou||Disciplinary Decision|
|October 23, 2006||EAF0300770001||Order Permitting Expert Testimony||Disciplinary Order|
|October 20, 2006||2005000127502||Order Denying Complainant's Motion for Partial Summary Disposition||Disciplinary Order|
|October 20, 2006||E9B2002055601||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|October 11, 2006||EAF0400300001||Order Denying Respondents' Rule 9252 Motion for the Production of Data, Documents and Testimony||Disciplinary Order|
|October 10, 2006||EAF0400300001||Order Directing the Parties to Cease Sending Non-Compliant Communications to the Office of Hearing Officers||Disciplinary Order|
|October 09, 2006||20042000056-01||Order Deferring Ruling on Motion for Summary Disposition||Disciplinary Order|
|October 04, 2006||ARB060029||Order Dismissing Defense and Granting Respondents Leave to File a Motion for Leave to Amend Their Request for Hearing||Disciplinary Order|
|October 03, 2006||EAF0400300001||Order Directing Respondents to File Exhibits and Witness List in Compliance With Pre-Hearing Order, and Extending Related Deadlines||Disciplinary Order|
|September 28, 2006||E8A2003091501||Order Granting Motion for to Permit Certain Witnesses to Have Counsel Present||Disciplinary Order|
|September 28, 2006||ARB060022||Order Deeming Defense as Abandoned, Hearing as Waived, and NASD Suspension Notice as Final||Disciplinary Order|
|September 20, 2006||ARB060029||Order Clarifying Agenda for Pre-Hearing Conference||Disciplinary Order|
|September 19, 2006||C07050042||Hearing Panel Decision in Department of Enforcement vs. Wanda P. Sears||Disciplinary Decision|
|September 19, 2006||2005003490801||Hearing Panel Decision in Department of Enforcement vs. Kenneth D. Schacht||Disciplinary Decision|
|September 18, 2006||CAF030042||Hearing Panel Decision in Department of Enforcement vs. Florence Sarah Pollard||Disciplinary Decision|