Supreme Court Hears Case on SEC’s Enforcement Work
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Supreme Court Hears Case on SEC’s Enforcement Work The Supreme Court last week heard arguments in a case that could impede the Securities and Exchange Commission’s ability to protect American investors.amicus brief in SEC v. Jarkesy asking the Court to reverse a lower court decision that would weaken the SEC’s ability to enforce securities laws through internal proceedings hearings before administrative law judges. Our SEC attorneys often prefer using the administrative process for their enforcement actions because it is faster and less onerous than litigating an action in court. In its brief, NTEU notes that post-2008 congressional changes allowed the SEC to heighten its enforcement efforts resulting in recovering $6.4 billion in penalties in fiscal year 2022 alone. At argument, the justices split on whether the SEC can constitutionally seek money penalties through its administrative proceedings or if it can only seek money penalties in court, where a jury trial would be available. In the aftermath of the 2008 recession, Congress knew the SEC needed more administrative powers to hold accountable anyone who would defraud investors. NTEU urges the Court to preserve those powers, so that SEC employees can continue to ensure our financial markets are fair for all. In September, NTEU filed an |
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