The recent decision by the U.S. Tenth Circuit Court of Appeals in Bandimere v. SEC called the constitutionality of the SEC’s system of in-house tribunals into question. The appellate panel determined that SEC administrative law judges carry out “important functions” and exercise “significant authority pursuant to the laws of the United States,” and are therefore “inferior officers” of the United States. Under the Appointments Clause, these officers must be appointed by the president, a federal court or a department head.
Clearly, the selection process for SEC ALJs does not meet this constitutional requirement….
‘Enforcement 40’ for 2020
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