SEC in-house judges violate right to jury trial, appeals court rules
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Source: Reuters via Robert Reich's YouTube channel
The Securities and Exchange Commission's in-house judges violate the U.S. Constitution by denying fraud defendants their right to a jury trial and acting without necessary guidance from Congress, the 5th U.S. Circuit Court of Appeals ruled on Wednesday.
The court ruled 2-1 in favor of hedge fund manager George Jarkesy Jr and investment advisor Patriot28 LLC, overturning an SEC administrative law judge's determination that they committed securities fraud.
The Dodd-Frank Act, which Congress passed after the 2008 financial crisis, expanded the SEC's ability to seek penalties in its administrative proceedings.
In the ruling Wednesday, the majority said that because seeking penalties is akin to debt collection, which is a private right, the defendants were entitled to a jury trial.
Read more: https://www.reuters.com/legal/government/sec-in-house-judges-violate-right-jury-trial-appeals-court-rules-2022-05-18/
This seems a little esoteric for LBN. But it's legit. Please read through. This is potentially destructive for the entire USG's authority to enforce anything. If this ruling stands and is applied throughout government, then America is no longer America. It will be finished and destroyed - unless Dems hold congress and the Whitehouse this year.
The 5th circuit incorrectly reasons that seeking monetary penalties for breaking the law is the same thing as collecting a debt. Collecting a debt is entirely a civil action that would require a jury trial to adjudicate. Whereas a "penalty" - until this ruling - could be exacted by administrative law judges holding fraudsters and thieves accountable for having cheated.
Economist Robert Reich explains it perfectly here:
https://www.youtube.com/post/UgkxNVvdNhUtiveNPy0heeBKVOlgsVuI4gBK
It's short. Please read it. This ruling effectively pulls the rug out from under the USG's feet with regard to enforcing any regulation without referring it for a full-on jury trial. This includes everything from OSHA rules, to clean air, to financial fraud, to...everything.
It's part of the plot of Republicans to destroy America.
jimfields33
(15,801 posts)Im shocked that some think otherwise.
in2herbs
(2,945 posts)require an agreement to mandatory arbitration, not court trials. The corps have been taking away our right to trial, and especially right to a jury trial in these agreements. Private parties have to sign these agreements/contracts waiving their right to trial and accepting arbitration in order to have their electricity turned on, purchase a car, virtually everything affecting their life. The corps mandatory arbitration clause in these contracts/agreements has been affirmed by the USSC. So yeah, people are punished without a trial.
Fiendish Thingy
(15,611 posts)No right to trial for violating a regulation versus a criminal statute.
This ruling says the government has no authority to enforce regulations except via criminal prosecution or civil suit
The ruling means that, in order to enforce legislation for, say, clean air standards, congress would have to pass a separate law for each regulation, and then DOJ musteither arrest or the relevant department must sue each alleged violator. Normally the standards law would be passed and then congress would delegate enforcement to an executive branch department, who would then draw up the regulations to enforce the standards and fine or issue injunctions against the violators.
This ruling is a big fucking deal that could cripple governance and democracy itself.
Roy Rolling
(6,917 posts)Absolutely. But it happened to me, and the NASD/SEC was judge, jury, and executioner against a one-man practice. I was chewed up and spit out by the big guys, which is the exact reason the rules are so complex and ultimately subjective.
These non-judicial hearings refuse to follow the law. In my case, regulators allowed affidavits instead of in-person witnesses by saying they arent bound by laws pertaining to courts and juries.
This ruling hits home.🧐
PSPS
(13,597 posts)Hoyt
(54,770 posts)The decision from the lower levels of appeal still stand, but it's possible a court trial might reverse the lower level.
So, nothing changes with SEC. If ALJ levies a fine and suspends you, you are suspended, pending any court appeal.
I don't think this will make much difference in anything. But we gotta yell and come up with all the bad outcomes that COULD happen.
I've dealt with Medicare ALJs before. Believe me, some are good, but some aren't up for the job.
Fiendish Thingy
(15,611 posts)Yonnie3
(17,441 posts)This is an exact duplicate of https://www.democraticunderground.com/10142918851
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