Supreme Court's Potential Rulings on Financial Fraud and SEC's Authority

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Source: CNN
Supreme Court's Potential Rulings on Financial Fraud and SEC's Authority
Photo: CNN
TL;DR Summary

The Supreme Court justices expressed concerns about the Securities and Exchange Commission's (SEC) enforcement actions for securities fraud, suggesting that the court may limit the agency's power. Conservative justices questioned the SEC's use of in-house administrative law judges, arguing that it violates an individual's right to a trial by jury. If the court rules against the SEC, it could impact other agencies that use similar proceedings. The case arose after the SEC brought an enforcement action for securities fraud, and the defendant challenged the proceedings, arguing they violated the Constitution. The 5th US Circuit Court of Appeals ruled in favor of the defendant, finding that certain SEC proceedings deprived individuals of their Seventh Amendment right to a civil jury. The Supreme Court seemed focused on this aspect of the case during arguments.

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