Constitutionality Of ALJs In SEC Enforcements Debated Before U.S. Supreme Court

(November 30, 2023, 10:00 AM EST) -- WASHINGTON, D.C. — Past Supreme Court precedent shows that Congress does not violate the Seventh Amendment by authorizing federal agencies to impose penalties for violations of federal statutes, the principal deputy solicitor general of the U.S. Justice Department told the high court on behalf of the Securities and Exchange Commission Nov. 29 during oral arguments in an appeal concerning the SEC’s use of an administrative law judge (ALJ) to adjudicate a hedge fund manager and his fund’s violation of securities statutes; the hedge fund manager countered that SEC enforcement actions belong before a federal judge....

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