Welcome to SEC Roundup, a bimonthly video sequence by former Securities and Trade Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Selection Advocates Community.
The Supreme Court docket agreed on June 30 to overview a case during which hedge fund principal George Jarkesy has been battling the SEC because it brought an administrative proceeding against him over 10 years in the past.
Morgan and Zaccaro talk about the case and its broad potential impression with Jarkesy’s attorneys, solo practitoners Karen Cook and Mike McColloch.
Jarkesy contends, and a federal appellate courtroom agrees, that the SEC’s administrative proceedings are unconstitutional and deny IAs and others their proper to a jury.
“It’s a really damaged system,” McColloch mentioned.
The SEC units up “these faux courts, I name them faux, contained in the company, administrative legislation judges … and so they placed on trials, similar to a federal courtroom would, besides no proper to trial by jury, the principles of proof don’t apply, to the extent they ever do, they solely apply in favor of the SEC and also you lose 100% of the time,” McColloch mentioned. “By and huge it’s a kangaroo courtroom.”
See the video above for the dialogue with Cook dinner and McColloch.
