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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInWelcome to the SEC’s Hotel California | Russ Ryan
And what about the remaining in-house cases that were forced to reboot after the Supreme Court’s Lucia decision? Most are at least six years old by now. Nearly all were fully relitigated and briefed on appeal to the SEC commissioners well over a year ago—some of them two or three years ago. But the last time the commissioners […]
The SEC’s enforcement regime may soon undergo a constitutional revamp — Financier Worldwide
Cochran and Jarkesy threaten the viability of the SEC’s home courts. But the reported death of the SEC’s enforcement regime at large has been greatly exaggerated. Before the enactment of the Dodd-Frank Act in 2010, the SEC could bring securities fraud actions against non-registered parties only in federal court. While the SEC increased its use […]
SEC, FTC Risk New Curbs as Supreme Court Eyes Regulators’ Reach
The US Supreme Court is turning its anti-regulatory campaign toward the federal agencies that are scrutinizing Wall Street banks and seeking to break up Meta Platforms Inc., taking up cases that could defang two powerful market regulators. The justices on Monday will consider whether those facing complaints from the Securities and Exchange Commission or the […]
The SEC’s Administrative Law Judges Under Fire | Woodruff Sawyer
At this moment, it remains unclear whether the SEC will be allowed to continue using the ALJ process. This lack of clarity does not mean that directors, officers, and companies should be any less vigilant when it comes to enforcing things like insider trading policies. Remember: The SEC doesn’t have to get a conviction to […]
In the Shadow of Lucia: The Uncertain Future of SEC Administrative Proceedings | Arnold & Porter
Will the combination of Cochran and Jarkesy lead the SEC to enter into more settlements in pending investigations or administrative proceedings? If the SEC faces a large percentage of respondents in administrative proceedings asking for injunctions from federal district courts, this could create a logistical nuisance, if not a nightmare, for the Commission. Despite the […]
Fifth Circuit Court Ruling Asks if SEC Can Even Make Rules – Bloomberg
The decision could go beyond the SEC. Other regulators, including the Commodity Futures Trading Commission and the Federal Trade Commission, also use in-house courts. “It will inspire a wave of litigation across all agencies” that use the administrative proceedings, says John Coates, a professor of law and economics at Harvard Law School and a former […]
Appeals Court Undercuts Agency Enforcement in SEC Fraud Case
“This very bold, radical, activist decision to hold unconstitutional provisions of a New Deal-era administrative agency’s enforcement regime has potential implications across the government,” said Catherine Fisk, a law professor at University of California-Berkeley. “It’s staggering.” The ruling dealt a blow to the federal agency enforcement powers in the Fifth Circuit’s jurisdiction, which includes Texas, […]
Judges Deal Latest Blow to SEC’s In-House Courts – WSJ
In the case decided Wednesday, the judges ruled that a nearly decade-old SEC enforcement action against a small hedge-fund manager was invalid because it violated his right to a jury trial. An SEC judge in 2014 found George Jarkesy liable for fraud, ordering him to pay a $300,000 fine and barring him from the securities […]
U.S. Supreme Court to hear SEC bid to avoid challenge to in-house judges | Reuters
The U.S. Supreme Court on Monday agreed to hear the Securities and Exchange Commission’s bid to block a challenge to the constitutionality of its in-house tribunal brought by a Texas accountant who the agency punished after faulting her audits of publicly traded companies. The justices took up the SEC’s appeal of a lower court ruling […]
Chief Administrative Law Judge Brenda Murray to Retire
The Securities and Exchange Commission today announced that Chief Administrative Law Judge Brenda Murray is retiring after 50 years of federal service, including 25 years as Chief Administrative Law Judge of the SEC. via SEC.gov | Chief Administrative Law Judge Brenda Murray to Retire.