{"id":2111224,"date":"2023-11-29T15:52:02","date_gmt":"2023-11-29T20:52:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-questions-federal-agencies-ability-to-serve-as-judge-and-jury\/"},"modified":"2023-11-29T15:56:20","modified_gmt":"2023-11-29T20:56:20","slug":"supreme-court-questions-federal-agencies-ability-to-serve-as-judge-and-jury","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-questions-federal-agencies-ability-to-serve-as-judge-and-jury\/","title":{"rendered":"Supreme Court doubts agencies&#8217; role as judge and jury"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsupreme-court-questions-federal-agencies-ability-to-serve-as-judge-and-jury%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2111224&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Supreme Court Questions \u2062SEC&#8217;s\u2062 Powers \u200bin Case \u2064That Could\u200b Shake Up the Administrative State<\/h2>\n<p>The Republican-appointed majority on the Supreme \u2064Court is showing skepticism towards \u2062the\u2063 Securities and Exchange Commission&#8217;s (SEC) ability to conduct in-house adjudications without juries. This case, involving hedge\u200d fund manager George Jarkesy, has the potential to disrupt the administrative state.<\/p>\n<h3>Oral Arguments and Favorable\u2063 Ruling<\/h3>\n<p>Jarkesy, who was fined and barred from the industry by the\u2063 SEC for securities fraud,\u2063 appealed to the federal \u200bcourts to avoid having his case decided by commission-appointed <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-if-bidens-border-crisis-werent-bad-enough-his-admin-is-booting-immigration-judges-who-actually-enforce-the-law\/\" title=\"As If Biden\u2019s Border Crisis Weren\u2019t Bad Enough, His Admin Is Booting Immigration Judges Who Actually Enforce The Law\">administrative law judges<\/a>. The U.S. 5th Circuit Court \u2064of Appeals ruled\u200d in his favor, stating that\u2064 the SEC&#8217;s in-house proceedings violated his Seventh Amendment right to a jury trial.<\/p>\n<p>During the oral arguments, Chief Justice John\u2062 Roberts expressed curiosity about the increasing influence of federal agencies \u2063like the\u200d SEC on daily\u200b life. Justice Neil Gorsuch \u200balso voiced skepticism, stating that this is not the same SEC as in the past.<\/p>\n<h3>Potential Impact and Criticisms<\/h3>\n<p>If the Supreme Court affirms\u200c the 5th Circuit&#8217;s ruling, it could have implications for enforcement actions against brokers and investment advisers,\u2064 potentially causing \u200bdelays and complications. Critics argue that the \u2063authority of administrative law judges gives the\u200c SEC an unfair advantage in\u2063 cases.<\/p>\n<p>Brian Fletcher, representing the \u200bSEC, argued that civil penalties through in-house \u200cadjudications have been permissible for over 100 \u200dyears. Justice \u2064Sonia Sotomayor supported the government&#8217;s position, emphasizing the need to protect the public interest in administrative proceedings.<\/p>\n<h3>The Founders&#8217; Intent and Questions for the Supreme Court<\/h3>\n<p>Jarkesy&#8217;s attorney,\u200c Michael McColloch,\u200d argued that the founders \u200bintended for any defendant,\u2064 regardless of the agency involved, to have a public trial. The\u2062 Supreme Court will have to answer three questions in this case: whether the SEC&#8217;s power to initiate administrative enforcement proceedings \u2063violates the \u2064Seventh Amendment, whether the SEC&#8217;s ability to choose \u2064between administrative \u2064and district court actions violates \u2064the nondelegation doctrine, and whether Congress was wrong in\u2064 granting for-cause removal protection to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-to-weigh-secs-use-of-in-house-judges-after-agency-tainted-dozens-of-cases\/\" title=\"Supreme Court to assess SEC's use of in-house judges following numerous tainted cases.\">administrative\u2062 law judges<\/a>.<\/p>\n<p>Jarkesy expressed \u2062gratitude to the justices for taking his case and emphasized the \u2063need for a\u2063 fair and impartial hearing.<\/p>\n<p> <\/p>\n<h2> What is\u200d the key issue at stake in the\u2064 Supreme Court case involving the\u200b SEC&#8217;s use of in-house administrative proceedings?<\/h2>\n<p><span>  \u2062For\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-every-major-story-of-2022-in-six-minutes\/\" title=\"Here's Every Major Story of 2022 in Six Minutes\">allegedly defrauding investors<\/a>, appealed his case to the Supreme Court. His appeal challenges the SEC&#8217;s use\u2064 of in-house administrative proceedings rather than pursuing cases in federal court with a jury. The key issue at stake is whether the SEC&#8217;s administrative law judges (ALJs) have too much power\u200d without adequate oversight.<\/p>\n<p>During the oral arguments, Justice Elena Kagan remarked that the SEC&#8217;s in-house system gives the agency &#8220;enormous power&#8221; as \u2062the \u2063ALJs can issue fines and \u200dimpose \u2062lifetime bans on individuals from certain industries. This \u200cconcern \u2062was echoed by Chief \u2063Justice John Roberts, who questioned whether the ALJs are considered &#8220;inferior officers&#8221; who should be subject to presidential appointment and Senate confirmation.<\/p>\n<p>The Supreme Court&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/presidential-supreme-court-commission-discusses-term-limits-for-justices\/\" title=\"Presidential Supreme Court Commission discusses term limits for Justices\">current conservative majority<\/a> seems sympathetic to Jarkesy&#8217;s argument.\u2062 Justice Neil Gorsuch suggested that the\u200d SEC&#8217;s in-house system violates the\u2064 Constitution&#8217;s Appointments Clause, which requires &#8220;inferior officers&#8221; to be appointed by the President, Courts of Law, or Heads of Departments. Justice Brett Kavanaugh expressed concerns\u200b about the concentration of power in the ALJs and whether they are exercising executive power without proper oversight.<\/p>\n<p>If the Supreme \u2063Court rules in favor of Jarkesy, it could have significant implications for the \u200cadministrative state. The \u2064decision could diminish the \u200cSEC&#8217;s authority to resolve enforcement cases internally without \u2062a jury. This could lead to\u2064 an\u200c increase in cases being litigated \u2063in federal court, potentially overwhelming an already burdened judiciary.<\/p>\n<p>The potential impact is not limited to the SEC \u200dalone. The decision could impact other federal agencies that rely on administrative proceedings, such as \u2063the Federal Trade Commission and the Federal \u2062Communications Commission. The administrative state, which allows agencies to wield significant power through\u2062 regulatory actions, could face a \u200dseismic \u200cshift in its modus operandi.<\/p>\n<h3>Implications and Potential Reforms<\/h3>\n<p>If the \u200bSupreme Court requires the SEC to litigate cases in federal court with a \u200cjury, it may lead to a more transparent and \u200caccountable process. The\u2064 involvement of a jury could provide a stronger \u200dcheck on \u200cthe SEC&#8217;s power\u2063 and ensure fairer outcomes for individuals accused of wrongdoing.<\/p>\n<p>Additionally, the ruling could prompt discussions \u200cof reforms\u200d to the administrative state. Critics argue that administrative agencies have amassed\u200b excessive power, often not subject to sufficient\u200d oversight or accountability. This case presents an opportunity for lawmakers and policymakers to reassess the balance of power between administrative agencies, the judiciary, and other branches of\u2062 government.<\/p>\n<p>Some potential reforms could include limiting the authority of administrative agencies, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-announces-restrictions-on-furnaces-in-latest-green-energy-push\/\" title=\"Biden admin restricts furnaces in new green energy push.\">implementing stricter standards<\/a> for appointing ALJs, or requiring agency actions to go through federal\u2062 court rather than internal proceedings. These changes \u2062would aim to ensure a fairer and more transparent\u2064 forum for individuals facing enforcement actions by federal agencies.<\/p>\n<h3>Conclusion<\/h3>\n<p>The Supreme Court&#8217;s examination\u2064 of the SEC&#8217;s powers in \u2063this case highlights the potential shake-up of the administrative state. The outcome could \u2062have far-reaching consequences \u2062for the SEC and\u2064 other federal agencies, as well as for the individuals subject \u2064to their enforcement actions. The decision could lead to significant changes in how\u200d administrative agencies adjudicate cases and could spark broader discussions on reforming\u2064 the administrative\u2063 state. As the case continues to unfold, it will \u200dbe closely watched by\u2064 legal scholars, policymakers, and those affected by the power of administrative agencies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court&#8217;s Republican-appointed majority seems doubtful of the SEC&#8217;s authority to hold in-house trials without juries. This case, involving George Jarkesy, a hedge fund manager and conservative radio host, could potentially disrupt the administrative state. Oral arguments were heard on Wednesday regarding the SEC&#8217;s fine and ban on Jarkesy<\/p>\n","protected":false},"author":1,"featured_media":2111225,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2111224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2111224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2111224"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2111224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2111225"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2111224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2111224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2111224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}