Administrative law judges should be able to adjudicate enforcement proceedings in which the government seeks civil penalties for securities violations, the Securities and Exchange Commission said in its opening brief before the US Supreme Court.
The Fifth Circuit’s ruling against the use of ALJs rests on a misunderstanding of legislative power, and Congress didn’t violate the constitution by allowing the SEC to use in-house judges for such proceedings, the agency said on Monday.
Hedge fund manager George Jarkesy and his advisory firm Patriot28 LLC allegedly violated securities laws by misrepresenting auditing practices and investment strategies to investors.
‘Enforcement 40’ for 2020
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