D.C. Cir. to Hear Arguments in Dispute Over SEC Forum

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By Phyllis Diamond

A timber investment concern will go head-to-head with the SEC Sept. 7, arguing to a federal appeals court that the agency’s in-house forum is unconstitutional ( TimberVest LLC v. SEC, D.C. Cir., No. 15-1416, oral argument 9/7/17 ).

A D.C. Circuit panel rejected a similar constitutional challenge in another case, Lucia v. SEC. The full U.S. Court of Appeals for the District of Columbia Circuit currently is weighing the issue.

Timbervest LLC and its top executives were ordered by an SEC in-house judge to pay nearly $1.9 million for 1940 Investment Advisers Act violations. On appeal to the commission, Timbervest argued that there were “numerous constitutional infirmities” with the agency’s in-house forum.

The SEC didn’t agree and Timbervest appealed to the D.C. Circuit. The panel judges will be announced approximately 30 days before the early September oral argument.

To contact the reporter on this story: Phyllis Diamond in Washington at pdiamond@bna.com

To contact the editor responsible for this story: Seth Stern at sstern@bna.com

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