‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedInSEC prevails again in latest circuit court challenge to APs| Compliance Week
Constitutional challenges to the SEC’s use of administrative proceedings to carry out enforcement actions continue to find no success in federal circuit court. Last week, the Eleventh Circuit joined three other circuits that have considered and rejected such challenges when it ruled in the SEC’s favor in two cases that had been consolidated for appeal: SEC v. […]
SEC beats new challenge to in-house judges in Atlanta federal court – Business Insider
The 11th U.S. Circuit Court of Appeals became the fourth federal appeals court to rule for the SEC, which critics say can benefit from pursuing enforcement cases in-house because they offer procedural advantages that can make it easier to win. By a 3-0 vote, the appeals court threw out preliminary injunctions that had blocked the […]
SEC Talks Up Its Second Circuit Win | Bloomberg BNA
In the same week that a divided U.S. Court of Appeals for the Second Circuit panel handed the SEC a win by sending Lynn Tilton’s constitutional challenge back to an administrative proceeding, the agency reported that decision to the Fourth and Eleventh Circuits. The Tilton opinion “addressed the same jurisdictional question presented here and affirmed […]
Tilton’s Challenge to SEC Hearings Rejected by Appeals Court – Bloomberg
Patriarch Partners founder Lynn Tilton lost her challenge to the U.S. Securities and Exchange Commission’s use of in-house judges, after arguing the process is unfair and unconstitutional. The federal appeals court in New York agreed with the lower court that the agency can pursue its case against Tilton internally. If the fund manager were to lose, […]
D.C. Circuit Tackles the Role of SEC Law Judges | New York Law Journal
A panel of the U.S. Court of Appeals for the D.C. Circuit grappled with the authority of the SEC judges, who handle administrative matters and contested enforcement actions. The petitioner argues that the in-house judges are “officers of the United States” who should be appointed by the agency’s commissioners and not hired by another agency […]
Lawyers Call For Challenges to SEC Administrative Proceedings | The Bond Buyer
The Supreme Court’s refusal to take up a case on the Securities and Exchange Commission’s use of administrative proceedings to impose penalties in enforcement cases prompted a law firm to recommend those subject to administrative proceedings to challenge their constitutionality. The alert issued by Orrick, Herrington & Sutcliffe on Thursday comes as the SEC has […]
Rep. Garrett ‘Distressed’ by SEC’s Faith in AP Process | Compliance Week
At a recent conference, an SEC official defended the agency’s use of administrative proceedings and flatly dismissed the notion that the SEC was using APs in order to gain a “home court advantage.” Rep. Scott Garrett didn’t like that one bit. via Rep. Garrett ‘Distressed’ by SEC’s Faith in AP Process | Compliance Week.
Senior SEC Official Calls Claims of Advantage at In-House Tribunal ‘Garbage’ – WSJ
A senior Securities and Exchange Commission official Friday hit back at suggestions the agency is gaining an unfair edge over defendants by sending more cases to its in-house judges, rather than to federal court. Matthew Solomon, head of the SEC’s trials unit, said claims that the agency enjoyed a home-court advantage at its in-house tribunal are “garbage.” […]
Mark Cuban Challenges the Referee: the Constitutionality of SEC In-House Courts | Securities Litigation, Investigations and Enforcement
After the repeated challenges to the SEC’s in-house courts as previously reported, Mark Cuban joined the debate by filing an amicus curiae brief in support of petitioners Raymond J. Lucia Companies, Inc. and Raymond J. Lucia (collectively “Lucia”) in Lucia v. SEC. Cuban, describing himself as a “first-hand witness to and victim of SEC overreach” […]
SEC Inspector General Report Finds No Evidence of ALJ Bias | Compliance Week
In a recently-issued report, the SEC’s Office of Inspector General concluded that there was no evidence to support allegations of bias on the part of Administrative Law Judges in the SEC’s administrative proceedings. The allegation had surfaced in a May 2015 article in The Wall Street Journal. via SEC Inspector General Report Finds No Evidence […]