Posted on 05/18/2022 8:23:24 PM PDT by yesthatjallen
The 5th Circuit Court of Appeals on Wednesday ruled the Securities and Exchange Commission (SEC) is denying defendants a 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 the SEC violated the Seventh Amendment constitutional 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.”
SNIP
(Excerpt) Read more at finance.yahoo.com ...
This is not as big as you may think.
The case originated in 2011 and the ultimate constitutional problem in the agency was corrected in 2018 (how the administrative judges were appointed). So if this case had originated 2018 or later, it would’ve been handled differently from the get go and we would not have this ruling.
Also, it concerns the civil penalties imposed, not the administrative actions taken.
Basically, the constitutional rules as it applies to this case are:
1) The folks at the top of the adjudication chain in the agency must be appointable and removal by the president without requiring any particular cause.
2) If part of the charge against the defendant include charges typically handled in regular courts (like the fraud in this case), the defendant must ultimately be allowed to go to regular court for a jury trial if they want.
3) The statute granting authority to the agency must give clear guidance as to what they can do. Here, the SEC had no guidance as to how to decide if a case should be adjudicated internally or in regular court. The SEC had full discretion in that regard.
In an nutsell, as long as you can ultimately appeal to a regular court, you’re still able to be screwed by the regulatory apparatus.
I would love to see this issue make it to the supreme court. The ability for administrative agencies to act as unaccountable mini-legislatures has gone way too far and needs reigned in. Several judges have expressed a need to revisit the issue.
I would love to see this issue make it to the supreme court. The ability for administrative agencies to act as unaccountable mini-legislatures has gone way too far and needs reigned in. Several judges have expressed a need to revisit the issue.
I would love to see this issue make it to the supreme court. The ability for administrative agencies to act as unaccountable mini-legislatures has gone way too far and needs reigned in. Several judges have expressed a need to revisit the issue.
Sorry about the triple post. I was unaware I had even done it.
Now consider your local police force & Sheriff who allegedly along with lawyers, judges,( which represents a closed union shop)
Tell you, you have to use one of their BCA's (Bar Card Agents) to have them speak for you in "their" place of worship. Just like all other private contractors.
Justice in America, I think not.
A solid ruling.
L
The judge’s ruling in this case completely flew over your head. Zooom!
“Congress also unconstitutionally delegated power to the SEC to act as a legislative body, Elrod wrote.”
I guess you’re short attention span didn’t make it to the number 3 in my post.
Try reading the actual ruling linked above as an exercise to improve your reading comprehension. You need it.
It’s impossible to find logic or meaning from your gobbledygook.
That would be no surprise coming from you.
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