The Fifth Circuit ruled incorrectly in finding the SEC’s use of executive-branch judges unconstitutional, the agency said in a petition asking the US Supreme Court for review.
At issue is a challenge by investment adviser George Jarkesy to the Securities and Exchange Commission’s determination that he couldn’t participate in certain securities activities and had to pay civil penalties. A divided panel of the US Court of Appeals for the Fifth Circuit sided with Jarkesy in May 2022, and the full court declined to rehear the case.
Legal scholars remarked on the decision’s broad implications immediately after it came down, with ...