5-4 Securities and Exchange Commission v. Jarkesy
Sep 17, 2024
The podcast dives into the Supreme Court case challenging the right to a jury trial for white-collar criminals. It discusses the implications of the Dodd-Frank Act and the SEC's evolving role in financial regulation. The hosts dissect the tension between Congress and the judiciary, highlighting systemic inequities in prosecuting securities fraud. They also critique modern right-wing politics, revealing its hypocrisy regarding anti-establishment sentiments. Intriguing political antics and potential ethical breaches in government finish with a tease for upcoming legal discussions.
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SEC Admin Adjudication Efficiency
- The SEC's administrative adjudication of securities fraud cases allows efficient handling of fraud without overwhelming courts.
- This avoids mass unpunished white-collar crime due to resource and capacity limits in federal courts.
Majority Equates Securities Fraud to Common Law
- The Supreme Court majority equates securities fraud with pre-existing common law fraud to limit jury trial rights.
- Roberts considers securities fraud not a 'new' claim but similar to historic fraud, denying SEC in-house adjudication.
Sotomayor's Public Rights Argument
- Justice Sotomayor frames securities fraud as a 'public right' enforceable by agencies without jury trials.
- She argues that regulation aims to prevent violations independent of individual injury, supporting agency adjudication.