All Administrative Proceedings articles

  • Blog post

    CFPB shuffles unit reporting lines, reviews administrative proceedings


    The work of a CFPB unit dedicated to discrimination cases, the Office of Fair Lending and Equal Opportunity, has been undermined by a recently announced organizational change, critics say. Also under new scrutiny at the agency: its use of administrative proceedings.

  • Article

    Debate over SEC’s in-house courts could go to the Supreme Court


    The SEC has fought off challenges to its in-house judges before, but new complaints that the Commission’s proceedings are unconstitutional might just stick. Joe Mont reports.

  • SECcrop
    Blog post

    SEC prevails in constitutional challenge to in-house judges


    It will assuredly not quell controversy surrounding the SEC’s use of in-house judicial hearings, but the U.S. Court of Appeals for the D.C. Circuit is now the first appellate court to uphold the constitutionality of those administrative proceedings. Joe Mont reports.

  • Article

    SEC modifies administrative proceedings, but did it go far enough?


    The SEC views administrative proceedings as a streamlined, time-sensitive process that can adjudicate certain enforcement actions that would otherwise clog federal courts. Critics see an unfair process that stacks the deck in favor of the Commission. The big issue, writes Joe Mont, is whether new procedural changes can appease detractors. ...

  • Blog post

    SEC adopts changes to administrative proceedings


    The SEC this week adopted amendments updating its rules of practice governing its administrative proceedings. After careful consideration of the comments received, the SEC adopted final amendments that, among other things, would adjust the timing of administrative proceedings and give parties additional opportunities to take depositions of witnesses. Jaclyn Jaeger ...

  • Blog post

    Rep. Garrett 'distressed' by SEC's faith in AP process


    At a recent conference, an SEC official defended the agency's use of administrative proceedings and flatly dismissed the notion that the SEC was using APs in order to gain a “home court advantage.” Rep. Scott Garrett didn't like that one bit.

  • Blog post

    SEC Inspector General report finds no evidence of ALJ bias


    In a recently-issued report, the SEC's Office of Inspector General concluded that there was no evidence to support allegations of bias on the part of Administrative Law Judges in the SEC's administrative proceedings. The allegation had surfaced in a May 2015 article in The Wall Street Journal.

  • Blog post

    Steven Cohen Preparing Latest Constitutional Challenge to SEC's APs


    The next constitutional challenge to the SEC's administrative proceedings process may be the most high-profile one to date. Lawyers for Steven A. Cohen confirmed that the SAC Capital founder intends to mount such a challenge if ongoing settlement talks are not successful.

  • Blog post

    Appellate Courts Tee Up Challenges to SEC In-House Proceedings


    The issue of whether federal district courts have subject matter jurisdiction over challenges to the constitutionality of SEC administrative proceedings remains unsettled. Although the 7th Circuit found in favor of the SEC on this issue in August 2015, the controversial issue will soon be considered by both the 11th Circuit ...

  • Article

    SEC Reform of In-House Trials Gets Lukewarm Reception


    Image: Facing lawsuits and other complaints that its administrative proceedings are stacked against defendants, the SEC is mulling changes to give the accused more ability to defend themselves. The proposals have received lukewarm reception at best. “The proposed amendments do not come close to addressing all the issues that administrative ...

  • Blog post

    SEC Proposes Changes to Administrative Proceedings


    The SEC has proposed changes to how it conducts its administrative proceedings, amid growing scrutiny of “APs” in the business and judicial world. The measures clarify the timing of proceedings, simplify requirements to seek a review by the full Commission, and require those involved in administrative proceedings to file and ...

  • Blog post

    Newman Decision Leads to Rare Loss for SEC in an AP


    SEC Administrative Law Judge Jason Patil dismissed an insider-trading case against a former Wells Fargo trader, noting that the SEC failed to prove that the person who allegedly tipped the trader did so for a personal benefit, as required by the Second Circuit’s disruptive opinion in U.S. v. Newman. Patil ...

  • Blog post

    SEC Prevails in First Appellate Decision on Challenges to APs


    Recently, respondents challenging the SEC’s ability to bring administrative proceedings have had success in two cases in federal district court. Last 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 in Bebo ...

  • Blog post

    Report: No Bias Found in SEC Hearings So Far


    A report from the SEC’s inspector general says he is looking into allegations of bias among administrative law judges in the SEC’s administrative proceedings, but has found no evidence so far to support those accusations. More inside.

  • Blog post

    Sand Hill Exchange Founder Accepts Responsibility, Has Feedback for SEC


    Despite a few outliers, most defendants in SEC settlements continue to settle cases "without admitting or denying" the allegations against them. While such language was also included in the Order memorializing the settlement of the SEC's recent administrative proceeding In the Matter of Sand Hill Exchange, et al., the settlement ...

  • Blog post

    SEC Judge RSVP's 'No' to Commission's Invitation to Submit Affidavit


    On June 4, 2015 the SEC issued an unusual order inviting one of its ALJs to file an affidavit addressing whether he has experienced any pressure to find in favor of the SEC in his cases. This week, the ALJ declined to do so, effectively RSVP'ing "no" to this "invitation." ...

  • Blog post

    SEC 'Invites' ALJ to Submit Affidavit on Pressure to Find for Agency


    Yesterday, the SEC issued an unusual order In the Matter of Timbervest LLC et al., an administrative proceeding currently before the agency. The Commission invited the ALJ in the case to file an affidavit addressing the existence of any pressure to rule in favor of the Division of Enforcement in ...

  • Blog post

    Former SEC Chairman Cox Weighs in on Administrative Proceedings


    In detailed remarks on Wednesday, former SEC Chairman Christopher Cox weighed in on the growing controversy concerning the SEC's use of administrative proceedings. Chairman Cox offered insights into how the present situation came to be and how it might be resolved.

  • Blog post

    SEC Gives Views on Courts vs. Administrative Hearings


    News sure to please corporate compliance and legal officers everywhere: The SEC has finally published guidance on how it decides whether to bring enforcement matters to court or in-agency administrative proceedings. The SEC has been bringing more actions against companies as administrative proceedings, sparking complaints that targets’ due process rights ...

  • Blog post

    March Madness! SEC Loses an AP for First Time Since FY 2013


    As I observed here a year ago, It is hard to make anything 100% pure. Ivory Soap famously falls just short at 99.44% pure. Even Breaking Bad's Walter White could not get his blue-tinted methamphetamine purer than 99.1%. In FY 2014, however, the SEC maintained 100% perfection in its administrative ...