Court rules SEC’s internal judges are unconstitutional

[Blackwater Lunchbreak]

The 5th Circuit Court of Appeals on Wednesday ruled the Securities and Exchange Commission (SEC) is denying defendants their constitutional right to a jury trial by putting them in front of its own internal judges.

In a 2-1 ruling, the court ruled for George Jarkesy and Patriot28 LLC, who sued the SEC in 2011 after the agency imposed a $300,000 fine and other punishments in a securities fraud case.

Judge Jennifer Walker Elrod wrote in the majority opinion that the SEC violated the Seventh Amendment’s right to a jury trial by bringing defendants before in-house judges and allowing the agency to “act as both prosecutor and judge.”

Congress also unconstitutionally delegated power to the SEC to act as a legislative body, Elrod wrote.

“‘We the People’ are the fountainhead of all government power. Through the Constitution, the people delegated some of that power to the federal government so that it would protect rights and promote the common good,” Elrod said. “But that accountability evaporates if a person or entity other than Congress exercises legislative power.”

In a dissenting opinion, Judge Eugene Davis disagreed, saying the right to a jury trial did not pertain to administrative proceedings and that the SEC was enforcing laws and statutes in the public interest.

Davis also said Congress did not overreach in empowering the SEC to enforce action through its administrative proceedings.


The ruling comes two days after the U.S. Supreme Court agreed to a hear a separate but similar case involving the SEC’s administrative powers and in-house judges in a suit brought by Texas accountant Michelle Cochran.

In the 5th Circuit case, Jarkesy created two hedge funds and selected Patriot28 as an investment adviser. In 2011, the SEC brought action against Jarkesy and Patriot28, accusing them of overvaluing their investment fund and misrepresenting data to attract investors.

An administrative law judge within the SEC ruled that Jarkesy and Patriot28 had committed securities fraud, as did the SEC’s internal commission.


https://thehill.com/regulation/court...onstitutional/

maybe the republic is restored?

[RB 60]

The 5th Circuit Court of Appeals on Wednesday ruled the Securities and Exchange Commission (SEC) is denying defendants their constitutional right to a jury trial by putting them in front of its own internal judges.

In a 2-1 ruling, the court ruled for George Jarkesy and Patriot28 LLC, who sued the SEC in 2011 after the agency imposed a $300,000 fine and other punishments in a securities fraud case.

Judge Jennifer Walker Elrod wrote in the majority opinion that the SEC violated the Seventh Amendment’s right to a jury trial by bringing defendants before in-house judges and allowing the agency to “act as both prosecutor and judge.”

Congress also unconstitutionally delegated power to the SEC to act as a legislative body, Elrod wrote.

“‘We the People’ are the fountainhead of all government power. Through the Constitution, the people delegated some of that power to the federal government so that it would protect rights and promote the common good,” Elrod said. “But that accountability evaporates if a person or entity other than Congress exercises legislative power.”

In a dissenting opinion, Judge Eugene Davis disagreed, saying the right to a jury trial did not pertain to administrative proceedings and that the SEC was enforcing laws and statutes in the public interest.

Davis also said Congress did not overreach in empowering the SEC to enforce action through its administrative proceedings.


The ruling comes two days after the U.S. Supreme Court agreed to a hear a separate but similar case involving the SEC’s administrative powers and in-house judges in a suit brought by Texas accountant Michelle Cochran.

In the 5th Circuit case, Jarkesy created two hedge funds and selected Patriot28 as an investment adviser. In 2011, the SEC brought action against Jarkesy and Patriot28, accusing them of overvaluing their investment fund and misrepresenting data to attract investors.

An administrative law judge within the SEC ruled that Jarkesy and Patriot28 had committed securities fraud, as did the SEC’s internal commission.


https://thehill.com/regulation/court...onstitutional/

maybe the republic is restored?

The republic won't be restored until Joe & the Ho are out of office, and may take years beyond that.

[Blackwater Lunchbreak]

The republic won't be restored until Joe & the Ho are out of office, and may take years beyond that.

so what are the market implications of the SEC being defanged?

i think it will only hasten the collapse.

[RB 60]

so what are the market implications of the SEC being defanged?

i think it will only hasten the collapse.

I try to remain optimistic. We weren't the greatest nation on earth for over 200 years to collapse in just a few years.

[Blackwater Lunchbreak]

I try to remain optimistic. We weren't the greatest nation on earth for over 200 years to collapse in just a few years.

yeah.....optimism!

so will corporations be insider trading and lying about everything now!

woot woot.......



Y'all should sell now.

[RB 60]

yeah.....optimism!

so will corporations be insider trading and lying about everything now!

woot woot.......



Y'all should sell now.

I should have sold 2 months ago.

[Blackwater Lunchbreak]

I should have sold 2 months ago.

doh

[RB 60]

doh

Oh well, I guess I have to ride it out until a legitimate president is elected again and the country regains some self confidence

[Matt Dillon]

Idk, adding more government doesn't sound like such a good idea. Besides, the SEC is pretty much a Bureau, no?

The SEC's task is to deal with securities fraud, by adding another layer, it will only slow them down.

In the OP, the judge ruled FOR some guys that committed securities fraud and then sued the SEC.

I don't see that as a good thing.

[Blackwater Lunchbreak]

Oh well, I guess I have to ride it out until a legitimate president is elected again and the country regains some self confidence

how low can we go?

it's limbo time!

[Blackwater Lunchbreak]

Idk, adding more government doesn't sound like such a good idea. Besides, the SEC is pretty much a Bureau, no?

The SEC's task is to deal with securities fraud, by adding another layer, it will only slow them down.

but there does need to be policing of what the big guys are doing, that is if they want the money of main street to be invested in their schemes.

as you know, im no libertarian.

[Blackwater Lunchbreak]

its disturbing to me this story didn't get any coverage anywhere.

I didn't even hear of it.

[Blackwater Lunchbreak]

maybe this is what happens when the press starts asking congress people about their trades.

[Blackwater Lunchbreak]

yes. the more i think about it...this is highly disturbing and the end of the line for non-oligarchs.

[Matt Dillon]

maybe this is what happens when the press starts asking congress people about their trades.

Congress voted themselves immune from prosecution in the Reagan years.

Between the time of Carter and Reagan, Congress voted to elevate themselves to the Lords of the United States.

It will take a Convention of the States to fix that.