As previously discussed here, there has been a barrage of recent cases attacking the constitutionality of the SEC’s use of administrative proceedings in its enforcement efforts. Recently, respondents challenging the SEC’s ability to bring these cases have had success in two such cases in federal district court. This week, the Seventh Circuit became the first appellate court to weigh in on this issue — and found in favor of the SEC. The Seventh Circuit held that the district court properly granted the SEC’s motion to dismiss the challenge to its AP because the district court did not have jurisdiction to hear such a challenge.
