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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.

Appeals Process

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
April 18, 2001 CAF000015 Hearing Panel Decision in Department of Enforcement v. Josephthal & Co., Inc.

Related Documents

Disciplinary Decision
April 17, 2001 CAF000013 Order Denying Respondents' Motion for Summary Disposition and Motion to Dismiss the Fourth Cause of Action and Supplementing Order Granting Complainant's Motion for Summary Disposition on Cause Four of the Complaint Against Respondents Disciplinary Order
April 06, 2001 C07000084 Order Denying Respondent's Motion to Reconsider and to Set Aside Default Decision Disciplinary Order
April 03, 2001 C9A990029 Hearing Panel Decision in Department of Enforcement v. Shannon Johnson Disciplinary Decision
March 22, 2001 C07000058 Hearing Panel Decision in Department of Enforcement v. Russell Montgomery, Jr. Disciplinary Decision
March 20, 2001 C10000102 Hearing Panel Decision as to Respondent Redacted Decision
March 08, 2001 C9A000027 Hearing Panel Decision in Department of Enforcement v. Luther A. Hanson

Related Documents

Disciplinary Decision
March 06, 2001 C07000003 Hearing Panel Decision in Department of Enforcement v. Jack H. Stein

Related Documents

Disciplinary Decision
March 06, 2001 C02000037 Hearing Panel Decision in Department of Enforcement v. Paul John Hoeper

Related Documents

Disciplinary Decision
March 02, 2001 EQS000002 Hearing Panel Decision in Department of Enforcement v. A. G. Halvorson Securities Inc. Expedited Decision, Rule 9540 Suspension Decisions
March 02, 2001 C07000013 Hearing Panel Decision in Department of Enforcement v. John F. Brown Disciplinary Decision
February 27, 2001 C8B000001 Hearing Panel Decision in Department of Enforcement v. Michael E. Zulick Disciplinary Decision
February 15, 2001 CMS000157 Order Granting Respondent's Motion to Exclude Documents Disciplinary Order
February 14, 2001 CAF000045 Order Granting Motions to Quash Disciplinary Order
February 13, 2001 C10000122 Order Regarding Complainant's Motion for a Preclusion Order Disciplinary Order
February 08, 2001 C07000033 Hearing Panel Decision in Department of Enforcement v. Franklyn Ross Michelin and LH Ross & Company, Inc.

Related Documents

Disciplinary Decision
February 05, 2001 C10970145 Michael Galasso, Jr., Gerard McMahon, John Montelbano, Dwayne Leverett, & Todd Nejaime Disciplinary Decision
February 02, 2001 C8A000024 Hearing Panel Decision in Department of Enforcement v. Paul E. Carney Disciplinary Decision
January 31, 2001 C10000086 Hearing Panel Decision in Department of Enforcement v. Peter D. Ragofsky Disciplinary Decision
January 30, 2001 C07000023 Hearing Panel Decision as to Respondent Redacted Decision
January 26, 2001 CAF000045 Order Denying Complainant's Motion to Strike Affirmative Defenses Disciplinary Order
January 23, 2001 C02990042,C02980085 Robert Tretiak Disciplinary Decision
January 23, 2001 C10000172 Order Denying Motion to Quash Disciplinary Order
January 16, 2001 C01000011 Hearing Panel Decision in Department of Enforcement v. W.R. Hambrecht & Co., LLC and William R. Hambrecht Disciplinary Decision
January 03, 2001 C01000003 Hearing Panel Decision in Department of Enforcement v. U.S. Rica Financial, Inc. and Vinh Huu Nguyen

Related Documents

Disciplinary Decision