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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCongress should put an end to in-house courts at the SEC | The Hill
Congress should give serious consideration to abolishing SEC administrative proceedings. They are not necessary to an effective securities enforcement program, and they fail to meet the standards of impartiality and fairness we expect from federal institutions. Contrary to some observers’ fears, this would not be the end of the administrative state. It would strengthen confidence […]
SEC suspends some in-house court cases over hiring of judges | Reuters
In an order dated May 22, the SEC said it would suspend any cases in which a defendant will have an option to appeal a case before the Tenth Circuit Court of Appeals, which covers the states of Colorado, Kansas, New Mexico, Oklahoma, Utah and Wyoming. via SEC suspends some in-house court cases over hiring […]
Case to Examine Legitimacy of SEC’s In-House Courts – WSJ
A federal appeals court on Wednesday will consider whether Wall Street’s top cop has vested too much power in its in-house courts, a system that regulators expanded several years ago as they sought to speed enforcement actions against firms and individuals accused of fraud and wrongdoing. The U.S. Court of Appeals for the District of […]
Appellate Lawyer Mark A. Perry to Argue SEC Forum Unconstitutional | Bloomberg BNA
Washington lawyer Mark A. Perry is hoping for a better outcome when he returns to the D.C. Circuit tomorrow to argue that the SEC’s administrative forum is inconsistent with the Appointments Clause. The Gibson Dunn & Crutcher LLP appellate litigator will argue the constitutional question on behalf of investment adviser Raymond J. Lucia for the […]
SEC suffers rare in-house loss in insider trading case – Nasdaq.com
The U.S. Securities and Exchange Commission on Tuesday suffered a rare loss before one of its own judges, who dismissed a case accusing an Atlanta real estate investor of insider trading. SEC Administrative Law Judge James Grimes found no evidence that Charles Hill gained $744,000 of illegal profit in shares of Radiant Systems Inc in […]
SEC to Face More Pressure on Enforcement Forum Choices | Bloomberg BNA
Republican lawmakers want to curb the SEC’s authority to bring enforcement actions using in-house tribunals—unless the agency moves first. Parties sued in the administrative forum could move the case to federal court under legislation (H.R. 5983) approved in September by the House Financial Services Committee. via SEC to Face More Pressure on Enforcement Forum Choices […]
Administrative Proceedings Remain Likely for SEC Enforcement Actions | New York Law Journal
Although there is intensifying political effort to rein in the SEC’s use of administrative proceedings, the current judicial climate heavily favors the SEC’s continued use of its choice of forum. In addition to the high “win/loss” ratio the SEC has achieved via administrative proceedings, a recent study out of the University of Michigan Law School […]
Lynn Tilton sues SEC again, calls cases unconstitutional | Reuters
Lynn Tilton, the New York financier accused by the U.S. Securities and Exchange Commission of defrauding her investors, on Friday sued the regulator to stop it from pursuing unfair in-house enforcement cases against her and others. The lawsuit filed in Manhattan federal court by Tilton and her firm Patriarch Partners accused the SEC of violating […]
Approved Amendments to SEC Rules Include Depositions in APs | Compliance Week
This week, the SEC announced that it had approved several amendments to its rules of practice regarding administrative proceedings. Most notably, the new rules provide parties to APs — for the first time — with the opportunity to conduct a limited number of depositions. The SEC also made several other minor tweaks to rules governing the timelines […]
Many fear changes to U.S. SEC’s in-house trials not enough | Reuters
The top U.S. securities regulator on Wednesday will try to answer complaints it stacks the deck against defendants at in-house trials by approving its first major revisions to the administrative proceedings in two decades. But the changes by the Securities and Exchange Commission may not silence critics. The 13 comment letters it received after proposing […]