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|
|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|
|September 15, 2006||FPI060008||Decision in Department of Market Regulation v. Respondent||Expedited Decision, Rule 9550 Expedited Decisions, Redacted Decision|
|September 15, 2006||ARB060023||Order Overruling Objection to Telephonic Hearing||Disciplinary Order|
|September 15, 2006||EAF0400300001||Order Granting Parties Leave to Offer Expert Testimony and Amending Schedule for Hearing||Disciplinary Order|
|September 14, 2006||DFC060004||Order Setting a Pre-Hearing Conference||Disciplinary Order|
|September 14, 2006||E072004006101 and 2005002392101||Order Denying Respondent Firm's Motions to Consolidate||Disciplinary Order|
|September 13, 2006||E102003130804||Hearing Panel Decision in Department of Enforcement vs. Michael Francis O'Neill||Disciplinary Decision|
|September 13, 2006||E102003025201||Order Granting Motion to Adjourn Proceeding and Setting Pre-Hearing Conference||Disciplinary Order|
|September 12, 2006||2005000631501||Hearing Panel Decision in Department of Enforcement vs. Bryan L. Claggett||Disciplinary Decision|
|September 11, 2006||E072004088501||Hearing Panel Decision in Department of Enforcement vs. Fausto E. Callava||Disciplinary Decision|
|September 08, 2006||CAF040079||Order Denying Respondent's Request for Leave to File Motion in Limine||Disciplinary Order|
|September 08, 2006||E072004072501||Hearing Panel Decision in Department of Enforcement vs. Andrew J. Hardin||Disciplinary Decision|
|September 07, 2006||CMS040165||Hearing Panel Decision in Department of Market Regulation vs. Ara Proudian||Disciplinary Decision|
|September 01, 2006||E0220030845-01||Order Requiring Counsel to File Notice Pursuant to Rule 9142||Disciplinary Order|
|August 30, 2006||CE3050003||Hearing Panel Decision in Department of Enforcement vs. American Funds Distributors, Inc.||Disciplinary Decision|
|August 28, 2006||C05030036||Sisung Securities Corporation||Disciplinary Decision|
|August 28, 2006||E8A2004095901||Hearing Panel Decision in Department of Enforcement vs. Jason A. Craig||Disciplinary Decision|
|August 18, 2006||E0220030845-01||Order Postponing Hearing||Disciplinary Order|
|August 17, 2006||C9B040059||Perpetual Securities, Inc., Cathy Y. Huang, and Youwei P. Xu||Disciplinary Decision|
|August 16, 2006||E8A2004065102||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|August 10, 2006||A8A050063||Homeland Securities Financial Services Group, Inc.||Membership Decision|
|August 10, 2006||C07050029||Hearing Panel Decision in Department of Enforcement vs. Anthony Cipriano||Disciplinary Decision|
|August 10, 2006||C07050050||Hearing Panel Decision in Department of Enforcement vs. Stephen P. Dunbar||Disciplinary Decision|