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|
|February 01, 2006||C02040032||Order Denying Motion to Dismiss||Disciplinary Order|
|February 01, 2006||C02040032||Hearing Panel Decision in Department of Enforcement vs. Dana N. Frankfort||Disciplinary Decision|
|January 31, 2006||C3A030008||Order Holding Respondent In Default and In Contempt, and Directing Complainant to File a Motion for Entry of Default Decision||Disciplinary Order|
|January 26, 2006||FPI050010||Decision in Department of Enforcement v. James J. Brazil||Expedited Decision, Rule 9550 Expedited Decisions|
|January 20, 2006||C05050015||Order Number 06-14 (C05050015)Order Following Final Pre-Hearing Conference and Rulings on Motions in Limine||Disciplinary Order|
|January 19, 2006||CLG050021||Order Establishing Procedure Governing Presentation of Expert Testimony||Disciplinary Order|
|January 19, 2006||EAF0400300001||Order Prohibiting Use of Subpeonas||Disciplinary Order|
|January 17, 2006||CLG050021||Order Denying Complainant's Motion for Appointment of Market Regulation Panelist||Disciplinary Order|
|January 13, 2006||CLI050016||Order Granting, In Part, Complainant's Motion to Preclude and Denying Respondent's Motion to Limit Complainant's Evidence||Disciplinary Order|
|January 12, 2006||E8A2003080701||Order Denying Respondent's Motion for Discovery||Disciplinary Order|
|January 12, 2006||C07050029||Order Denying Complainant's Motion to Preclude the Respondent from Offering Evidence, Revising the Pre-Hearing Schedule, and Denying Respondent's Motion to Reconsider Denial of Motion to Compel Discovery||Disciplinary Order|
|January 11, 2006||E9B2003033501||Order Denying In Part and Granting In Part Respondent's Motion to Compel Discovery||Disciplinary Order|
|January 10, 2006||CLI050016||Order Denying Respondent's Motion to Disqualify Hearing Panelist||Disciplinary Order|
|January 10, 2006||E8A2004065102||Order Requiring Respondent to Supplement His Rule 9252 Request||Disciplinary Order|
|January 10, 2006||CLI050016||Order Denying Respondent's Motion to Compel Discovery||Disciplinary Order|
|January 09, 2006||C8A050041||Order Denying Respondent's Motion to Set Aside Default||Disciplinary Order|
|January 06, 2006||CLI050004||Order Denying Respondent's Motion to Adjourn Hearing||Disciplinary Order|
|January 06, 2006||C05050015||Order Granting Respondent 2's Motion for Production of Documents Pursuant to Rule 9253||Disciplinary Order|
|January 04, 2006||C06050004||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|January 01, 2006||SD06002||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Denials|
|January 01, 2006||SD06003||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Approvals|
|January 01, 2006||SD06006||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Approvals|
|January 01, 2006||SD06011||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Approvals|
|January 01, 2006||SD06008||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Approvals|
|January 01, 2006||SD06014||In the Matter of the Association of X||Redacted Decision, Statutory Disqualification, Approvals|