SEC Case Threatens Widespread Disruption
The commission may have gone too far in relying on in-house judges. But a radical Supreme Court ruling could cause chaos.
Bureaucrats, beware.
Photographer: Andrew Harrer/Bloomberg
On Wednesday, the Supreme Court will consider a case of potential overreach by the Securities and Exchange Commission that could have far-reaching consequences — both for the commission and for every other government agency.
One of the questions before the court is whether the SEC violated hedge fund manager George Jarkesy’s right to a jury trial by assigning his case to an in-house judge, who imposed financial penalties and barred him from the industry. The justices have previously ruled that there are limited situations, such as the protection of public rights, when a government agency can bypass a trial.