SEC Drops Auditor Misconduct Cases After In-House Judges Ruling

The SEC has dropped misconduct charges against at least eight auditors in the wake of a recent Supreme Court ruling that limited the regulator’s use of its in-house courts.

The accountants had faced Securities and Exchange Commission charges of shoddy audit work that failed to catch in some cases misstatements, even fraud. They faced suspensions or permanent bars from working as accountants before the regulator, an onerous penalty that can end careers.

Among the cases the regulator tossed out in August was an action against a Marcum LLP audit partner who is suing the SEC challenging its administrative enforcement process. ...