Jarkesy contends, and a federal appellate court agrees, that the SEC’s administrative proceedings are unconstitutional and deny IAs and others their right to a jury.
“It’s a very broken system,” McColloch said.
The SEC sets up “these fake courts, I call them fake, inside the agency, administrative law judges … and they put on trials, just like a federal court would, except no right to trial by jury, the rules of evidence don’t apply, to the extent they ever do, they only apply in favor of the SEC and you lose 100% of the time,” McColloch said. “By and large it’s a kangaroo court.”
Source: Supreme Court to Decide Fund Manager’s 10-Year SEC Fight — SEC Roundup | ThinkAdvisor
