The Securities and Exchange Commission asked the full Fifth Circuit to review a decision finding the agency’s administrative proceedings unconstitutional, arguing the ruling created uncertainty over federal agencies’ use of in-house judges to hear cases.
In May, a divided panel for the US Court of Appeals for the Fifth Circuit vacated a SEC decision that hedge-fund manager George Jarkesy Jr. committed securities fraud. The panel found, in part, that restrictions on removing SEC administrative law judges only for cause violated the separation of powers.
Source: SEC Seeks Review of Ruling That Cast ‘Cloud’ Over Enforcement
