![The Supreme Court ruled 6-3 that the SEC violated the Seventh Amendment rights of George Jarkesy by denying his right to a jury trial.](https://san.com/wp-content/uploads/2024/06/CLEAN-TheStoryName_Getty_featuredImage_Thu-Jun-27-2024.jpg?w=1920)
SCOTUS sides with conservative radio host Jarkesy in case fighting SEC ruling
Thursday
By Simone Del Rosario (Business Correspondent), Brent Jabbour (Senior Producer), Emma Stoltzfus (Editor)
A conservative radio host took on the Securities and Exchange Commission (SEC) and won. The Supreme Court Thursday, June 27, ruled 6-3 in favor of George Jarkesy, who was charged with securities fraud and ordered by an SEC judge to pay a civil penalty of $300,000.
Media Landscape
See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below.
Learn more about this dataLeft 29%
Center 65%
Right 6%
Bias Distribution
Far
Left
+0
Click to close
Supreme court rules that the SEC’s in-house rulings violate US constitution
Click to see story on The Guardian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Associated Press News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on abc News
SEC power: Supreme Court limits power of agency to unilaterally enforce financial fraud regulations
Click to see story on CNN
In conservative win, Supreme Court limits use of SEC in-house tribunals
Click to see story on The Washington Post
Supreme Court strips SEC of key enforcement power to penalize fraud
Click to see story on CBS News
Supreme Court makes it harder for SEC to punish fund managers accused of defrauding investors
Click to see story on Los Angeles Times
Supreme Court Curbs SEC’s Use of in-House Judges in Fraud Cases
Click to see story on Bloomberg
Liberal Justice Sotomayor bemoans ‘dismantling’ of federal agency power as Supreme Court curbs SEC
Click to see story on NBC News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on SooToday.com
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Barrie Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Koco News5
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases – Boston News, Weather, Sports
Click to see story on WHDH
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on News & Record
Supreme Court strips Securities and Exchange Commission of key enforcement tool
Click to see story on PBS NewsHour
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on San Antonio Express-News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Virginian Pilot
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Orlando Sentinel
Click to close
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KRDO
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KVIA
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Winnipeg Free Press
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WPLG
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Pioneer Press
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WKMG
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KCRA 3
Supreme Court strips SEC of critical enforcement tool in fraud cases
Click to see story on Portland Press Herald
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WCVB
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Billings Gazette
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WMUR
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WLKY
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WESH
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Helena Independent Record
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KETV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WDSU
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WTAE
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WYFF
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KCCI
The Supreme Court strips the Securities and Exchange Commission of a critical enforcement tool in fraud cases
Click to see story on Denver Post
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KMBC
Supreme Court rules SEC’s in-house hearings for fraud cases violate right to trial
Click to see story on The Oregonian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KOB 4
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Wisconsin State Journal
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WISN
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WBAL-TV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Missoulian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WPTZ
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WMTW
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Montana Standard
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WVTM
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WAPT
Supreme Court strips SEC of crucial enforcement tool in fraud cases
Click to see story on Fortune
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KOAT
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KWWL
Supreme Court strips SEC of critical enforcement tool in fraud cases
Click to see story on NY1
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WGAL
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WXII
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Florida Politics
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KSBW
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KTVZ
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WJCL
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KHBS
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Times Herald
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Republic
Click to close
Supreme Court Rules Federal Agency’s In-House Judges Violate Americans’ Right To Jury Trial
Click to see story on The Daily Caller
Supreme Court Rules Federal Agency’s In-House Judges Violate Constitution – The Florida Capital Star
Click to see story on Florida Capital Star
Supreme Court rules federal agency’s in-house judges violate Constitution
Click to see story on Conservative News Today
Click to close
Far
Right
+0
Click to close
Untracked Bias
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on My Mother Lode
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Orillia Matters
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Newmarket Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Midland Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Collingwood Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Thorold Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Elora Fergus Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases – The Morning Sun
Click to see story on Morning Sun
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on MOR-TV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Bradford Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Timmins Today
Breaking: Supreme Court Limits SEC’s Use of In-House Trials in Fraud Cases
Click to see story on Coingape
Click to close
81 other sources covering this story
Total News Sources
81
Leaning Left
20
Center
45
Leaning Right
4
Last Updated
2 days ago
Jarkesy appealed, claiming the SEC violated his Seventh Amendment right to a jury trial by deciding his case using an in-house judge, known as an administrative law judge (ALJ). These are judges in the executive branch, not the judicial branch. They are employed by the agency bringing the charges.
The argument for ALJs across government is that they’re specialized judges in that field. But remember the saying, “the house always wins.” A Wall Street Journal analysis from 2010 to 2015 showed the SEC won 90% of cases before its in-house judges and just 69% before federal court judges.
“I think it’s, honestly, a cheap default by the SEC,” said Stephen Best, an attorney at Brown Rudnick who successfully defended Mark Cuban against the SEC’s insider trading claims.
Straight Arrow News interviewed Best following the Supreme Court’s oral arguments in the Jarkesy case.
“I think that it was a ghost that nobody really focused on until after the Mark Cuban insider trading case,” Best said. “And when the SEC had incredible difficulties accommodating the requirements of the U.S. District Court’s rules on discovery and trial practice, they ran back to their home at the ALJ.”
The Jarkesy case had the potential to upend the court system. There are more than twice as many ALJs as federal judges. Had the Supreme Court ruled the use of ALJs as a whole is unconstitutional, this would have flooded the courts with cases.
“The floodgates are about to open up and that’s what the Supreme Court’s worried about,” Best said at the time. “And so they’re going to be very careful in tailoring their opinion, but nonetheless, however careful they’re going to be, it’s still going to leave room for interpretation.”
At last count by the U.S. Office of Personnel Management, there are more than 1,900 ALJs across federal agencies. Eighty-six percent of them deal in Social Security cases. Just five judges come from the SEC as of 2017. In Thursday’s decision, the Supreme Court was careful to keep its ruling specific to that house, and even more narrowly, to fraud cases.
“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator,” Chief Justice John Roberts wrote in the majority opinion. “Rather than recognize that right, the dissent would permit Congress to concentrate the roles of prosecutor, judge, and jury in the hands of the Executive Branch. That is the very opposite of the separation of powers that the Constitution demands.”
Unbiased news.
Directly to your inbox. Free!
Learn more about our emails. Unsubscribe anytime.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
“Beyond the majority’s legal errors, its ruling reveals a far more fundamental problem: This Court’s repeated failure to appreciate that its decisions can threaten the separation of powers,” Justice Sonia Sotomayor wrote for the dissent. “Here, that threat comes from the Court’s mistaken conclusion that Congress cannot assign a certain public-rights matter for initial adjudication to the Executive because it must come only to the Judiciary.”
This likely isn’t the last time the issue of ALJs will come up. Facebook parent company Meta sued the Federal Trade Commission last year challenging its use of the in-house justice system, also claiming it violates the company’s right to a trial jury.
Simone Del Rosario: A conservative radio host took on the Securities and Exchange Commission and won. The Supreme Court Thursday ruled 6-3 in favor of George Jarkesy, who was charged with securities fraud and ordered by an SEC judge to pay a civil penalty of $300,000.
Jarkesy appealed, claiming the SEC violated his Seventh Amendment right to a jury trial by deciding his case using an in-house judge, known as an administrative law judge, or ALJ.
These are judges in the executive branch, not the judicial branch. And they are employed by the agency bringing the charges.
The argument for these ALJs across government is that they’re specialized judges in that field. But you know the saying, the house always wins?
A Wall Street Journal analysis from 2010 to 2015 showed the SEC won 90% of cases before its own judges, and just 69% before federal court judges.
Stephen Best: I think it’s a, honestly, a cheap default by the SEC.
Simone Del Rosario: When this case first came before the Supreme Court, I interviewed Stephen Best, an attorney who successfully defended Mark Cuban against the SEC’s insider trading claims.
Stephen Best: I think that it was a ghost that nobody really focused on until after the Mark Cuban insider trading case. And when the SEC had incredible difficulties accommodating the requirements of the U.S. District Court’s rules on discovery and trial practice, they ran back to their home at the ALJ.
Simone Del Rosario: This case had the potential to upend the court system as we know it. There are more than twice as many ALJs as federal judges. And had SCOTUS ruled the use of ALJs as a whole is unconstitutional, this would have flooded the courts with cases.
Stephen Best: The floodgates are about to open up, and that’s what the Supreme Court’s worried about. And so they’re going to be very careful in tailoring their opinion, but nonetheless, however careful they’re going to be, it’s still going to leave room for interpretation.
Simone Del Rosario: At last count, there are more than 1,900 ALJs across federal agencies. Eighty-six percent of them deal in Social Security cases. Just five come from the SEC. And SCOTUS was careful to keep its ruling specific to that house, and even more narrowly, to fraud cases.
In the majority opinion, Chief Justice John Roberts writes: A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator. Rather than recognize that right, the dissent would permit Congress to concentrate the roles of prosecutor, judge, and jury in the hands of the Executive Branch. That is the very opposite of the separation of powers that the Constitution demands.
In the dissent, Justice Sonia Sotomayor writes: Beyond the majority’s legal errors, its ruling reveals a far more fundamental problem: This Court’s repeated failure to appreciate that its decisions can threaten the separation of powers. Here, that threat comes from the Court’s mistaken conclusion that Congress cannot assign a certain public-rights matter for initial adjudication to the Executive because it must come only to the Judiciary.
This isn’t the last we’ll hear of ALJs. Facebook parent company Meta sued the Federal Trade Commission last year challenging its use of the in-house justice system, also claiming it violates the company’s right to a trial jury.
Download the Straight Arrow News app and enable notifications so you get alerts for the next Supreme Court ruling.
Related
Media Landscape
See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below.
Learn more about this dataLeft 29%
Center 65%
Right 6%
Bias Distribution
Far
Left
+0
Click to close
Supreme court rules that the SEC’s in-house rulings violate US constitution
Click to see story on The Guardian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Associated Press News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on abc News
SEC power: Supreme Court limits power of agency to unilaterally enforce financial fraud regulations
Click to see story on CNN
In conservative win, Supreme Court limits use of SEC in-house tribunals
Click to see story on The Washington Post
Supreme Court strips SEC of key enforcement power to penalize fraud
Click to see story on CBS News
Supreme Court makes it harder for SEC to punish fund managers accused of defrauding investors
Click to see story on Los Angeles Times
Supreme Court Curbs SEC’s Use of in-House Judges in Fraud Cases
Click to see story on Bloomberg
Liberal Justice Sotomayor bemoans ‘dismantling’ of federal agency power as Supreme Court curbs SEC
Click to see story on NBC News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on SooToday.com
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Barrie Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Koco News5
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases – Boston News, Weather, Sports
Click to see story on WHDH
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on News & Record
Supreme Court strips Securities and Exchange Commission of key enforcement tool
Click to see story on PBS NewsHour
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on San Antonio Express-News
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Virginian Pilot
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Orlando Sentinel
Click to close
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KRDO
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KVIA
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Winnipeg Free Press
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WPLG
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Pioneer Press
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WKMG
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KCRA 3
Supreme Court strips SEC of critical enforcement tool in fraud cases
Click to see story on Portland Press Herald
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WCVB
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Billings Gazette
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WMUR
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WLKY
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WESH
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Helena Independent Record
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KETV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WDSU
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WTAE
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WYFF
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KCCI
The Supreme Court strips the Securities and Exchange Commission of a critical enforcement tool in fraud cases
Click to see story on Denver Post
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KMBC
Supreme Court rules SEC’s in-house hearings for fraud cases violate right to trial
Click to see story on The Oregonian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KOB 4
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Wisconsin State Journal
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WISN
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WBAL-TV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Missoulian
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WPTZ
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WMTW
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Montana Standard
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WVTM
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WAPT
Supreme Court strips SEC of crucial enforcement tool in fraud cases
Click to see story on Fortune
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KOAT
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KWWL
Supreme Court strips SEC of critical enforcement tool in fraud cases
Click to see story on NY1
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WGAL
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WXII
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Florida Politics
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KSBW
Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
Click to see story on KTVZ
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on WJCL
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on KHBS
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Times Herald
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on The Republic
Click to close
Supreme Court Rules Federal Agency’s In-House Judges Violate Americans’ Right To Jury Trial
Click to see story on The Daily Caller
Supreme Court Rules Federal Agency’s In-House Judges Violate Constitution – The Florida Capital Star
Click to see story on Florida Capital Star
Supreme Court rules federal agency’s in-house judges violate Constitution
Click to see story on Conservative News Today
Click to close
Far
Right
+0
Click to close
Untracked Bias
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on My Mother Lode
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Orillia Matters
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Newmarket Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Midland Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Collingwood Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Thorold Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Elora Fergus Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases – The Morning Sun
Click to see story on Morning Sun
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on MOR-TV
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Bradford Today
The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Click to see story on Timmins Today
Breaking: Supreme Court Limits SEC’s Use of In-House Trials in Fraud Cases
Click to see story on Coingape
Click to close
81 other sources covering this story
Total News Sources
81
Leaning Left
20
Center
45
Leaning Right
4
Last Updated
2 days ago
Unbiased news.
Directly to
your inbox.
Free!
MOST POPULAR
-
Getty Images
After Trump-Biden debate debacle, what happens to RFK Jr.?
Watch 2:17
Yesterday
-
Getty Images
Trump reference to ‘Black jobs’ sparks new debate about immigration
Watch 4:45
Yesterday
-
Getty Images
Northeast border agents arrest record number of undocumented immigrants
Watch 1:51
Yesterday
-
AP Images
What the $4.8 billion NFL Sunday Ticket ruling means for football fans
Watch 8:56
Yesterday