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|
|October 08, 2010||2005000879302||Legacy Trading Co., LLC and Mark Alan Uselton||Disciplinary Decision|
|October 08, 2010||2007009461301||Extended Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|October 08, 2010||2008012026601||CMG Institutional Trading, LLC and Shawn D. Baldwin||Disciplinary Decision|
|October 08, 2010||2008014621701||Order Denying Respondents' Motion to Compel Production of Documents and List of Withheld Documents||Disciplinary Order|
|October 06, 2010||FPI100008||Hearning Panel Decision in Department of Member Regulation v. Sharemaster||Expedited Decision, Rule 9550 Expedited Decisions|
|September 28, 2010||20090182345||In the Matter of the New Membership Application of Firm A||Membership Decision|
|September 20, 2010||2005000171202||Hearing Panel Decision in Department of Market Regulation v. Respondent||Redacted Decision|
|September 17, 2010||FPI100016||Hearning Panel Decision in Department of Member Regulation v. Gremo Investments, Inc.||Expedited Decision, Rule 9550 Expedited Decisions|
|August 19, 2010||2006003834901||Moustafa M. Zayed||Disciplinary Decision|
|August 19, 2010||2008012531501||Hearing Panel Decision in Department of Enforcement v. Kevin Scott Pound||Disciplinary Decision|
|August 18, 2010||20090173549||In the Matter of the Membership Continuance Application of Applicant Firm A||Membership Decision|
|August 18, 2010||EAF0400630001||Kevin L. Cohen, Dennis S. Kaminski, and Gari C. Sanfilippo||Disciplinary Decision|
|August 11, 2010||E9B2003033701||Hearing Panel Decision in Department of Enforcement v. Respondent||Redacted Decision|
|August 06, 2010||2005001988201||Amended Hearing Panel Decision in Department of Enforcement v. Mark B. Beloyan and Tradespot Markets, Inc.||Disciplinary Decision|
|July 30, 2010||2007010306901||FCS Securities and Dale Kleinser||Disciplinary Decision|
|July 26, 2010||2005000835801||Harry Friedman||Disciplinary Decision|
|July 12, 2010||2008014621701||Order Granting Respondent 2's Motion to File a Reply and Denying Respondent 2's Motion for More Definite Statement||Disciplinary Order|
|June 15, 2010||2008014873201||Hearing Panel Decision in Department of Enforcement v. Nicholas Michael Rubino||Disciplinary Decision|
|June 11, 2010||2007007792902||Extended Hearing Panel Decision in Department of Enforcement v. Edward S. Brokaw||Disciplinary Decision|
|May 28, 2010||200011592201||Order Denying Respondents' Motion for Leave to Offer Expert Testimony||Disciplinary Order|
|May 21, 2010||20070094468||Amended Hearing Panel Decision in Department of Enforcement v. Dirk Allen Taylor||Disciplinary Decision|
|May 21, 2010||2007011489301||Hearing Panel Decision in Department of Enforcement v. Ryan A. Leopold||Disciplinary Decision|
|May 19, 2010||2007011937001||Hearing Panel Decision in Department of Enforcement v. Howard Braff||Disciplinary Decision|
|May 10, 2010||2005003188901||Richard G. Cody||Disciplinary Decision|
|May 10, 2010||2007009981201||Hearing Panel Decision in Department of Enforcement v. Robert D. Tucker||Disciplinary Decision|