I have been waiting for a while to write about this issue, since it arose in an Enforcement case I handled for a client, and I wanted the matter to run its full course at FINRA before I started throwing stones. Sadly, there are so many things I could complain about here. The fact that
Office of Hearing Officers
FINRA’s “Massive” Discovery Failure Results In…Absolutely Nothing
By Alan Wolper on
You are not going to believe this one. Here are the unadulterated facts, taken directly from the Order entered by the FINRA Hearing Officer (an Order, by the way, which FINRA elected not to publish on its website):
- Five days into an Enforcement hearing against Respondent Steven Larson, “Enforcement disclosed that it just realized it
…
What Else Is New? FINRA Skates Despite “Massive” Failure To Produce Documents
By Alan Wolper on
Let’s play pretend. Can you imagine what FINRA would do to a respondent broker-dealer in an Enforcement action that announced on Day Five of the hearing – i.e., during the “final phase” of the hearing – that – whoops! – it had forgotten to produce certain documents that it should have produced eight months before…
Some Amusing OHO Decisions
By Michael Gross on
As a former member of FINRA Enforcement’s Litigation Department and a current practitioner in FINRA regulatory matters, I have read my fair share of decisions from the Office of Hearing Officers (OHO). I recently read the Southeast Investments/Black decision, which was issued in March. There is some good stuff in there – from an entertainment…
Is There A Catch-22 To Fighting FINRA Charges?
By Michael Gross on
Here is a fascinating analysis by my partner, Michael Gross, of FINRA’s twisted logic when it comes to sanctions: your very decision not to admit liability and to put FINRA to its proof can, and will, be held against you when it comes time to determine the appropriate sanctions. Or will it? – Alan
The…
Procedural Motions In FINRA Enforcement Actions: An Exercise In Futility
By Alan Wolper on
Defending a FINRA Enforcement action is not easy. This stems principally from the fact that FINRA simply won’t file a complaint in the first place if they believe that there’s any realistic chance they will not win the case. Thus, they expect to win every time they do file a complaint, and perhaps not unreasonably…
(Another) Landslide Victory: FINRA Enforcement Offers ZERO Evidence Of Fraud
By Chris Seps on
At the end of last week, we received our second[1] decisive win in a FINRA Enforcement case in a matter of days. Following a two-day hearing back in July, the hearing Panel dismissed all charges against our clients Paul J. McIntyre and MSC-BD, LLC. While any victory is nice, and doing justice for a…
Nobody’s Perfect (And Even FINRA Finally Acknowledged It)
By Heidi VonderHeide on
Fans of this blog (or, at least, readers of this blog who are fans of Jeopardy) will no doubt remember Alan’s prior post, published a few weeks ago, and discussing a recent case that FINRA’s Department of Enforcement brought against one of our clients. From the very beginning, we, as her counsel, were both…
If You’re a Respondent, Time is NOT on Your Side
By Alan Wolper on
Posted in Arbitration, Defenses, Disciplinary Process, Enforcement, FINRA, Registered Representative, SEC
There was a decision this week from the D.C. Circuit Court of Appeals on an appeal of a decision by a respondent who – stop the presses! – lost an SEC administrative proceeding, and then lost his appeal to the SEC. Montford and Company, Inc. v. SEC, No. 14-1126 (July 10, 2015). One of…
FINRA’s Code Of Procedure: Unfair To The Gander
By Alan Wolper on
We have complained before in this blog about some of the obvious inequities associated with the FINRA Enforcement process that disfavor respondents. But I heard of a new one this week from a colleague, so I thought I would take the opportunity to revisit the issue.
While there are several things problematic about the Code…