Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
June 3 — The Securities and Exchange Commission is spreading the word of its favorable ruling in the Second Circuit case of the “diva of distressed” to other circuits as it continues its efforts to beat back challenges to its in-house courts.
In the same week that a divided U.S. Court of Appeals for the Second Circuit panel handed the SEC a win by sending Lynn Tilton's constitutional challenge back to an administrative proceeding, the agency reported that decision to the Fourth and Eleventh Circuits.
The Tilton opinion “addressed the same jurisdictional question presented here and affirmed the dismissal of a similar lawsuit,” the SEC said in nearlyidenticalletters filed in three cases in the two circuits.
The Second Circuit held that Tilton, the respondent in an SEC enforcement action, has to fully litigate her case in the agency's in-house court before she may challenge the constitutionality of that very forum in a federal-court complaint (106 SLD, 6/2/16).
In the U.S. Court of Appeals for the Fourth Circuit, the SEC faces a challenge from investment adviser Dawn Bennett, whom the agency accused of exaggerating returns in advertisements for her firm ( Bennett v. SEC, 4th Cir., No. 15-2584, supplemental authorities, 6/2/16 ).
Bennett protested the administrative proceeding against her by not showing up (30 SLD, 2/16/16). She argues the agency's administrative law judges are unconstitutionally hired.
The agency also sent the letters in two consolidated cases in the U.S. Court of Appeals for the Eleventh Circuit, part of its response to challenges made by Gray Financial Group Inc. and Charles Hill ( Gray Fin. Group, Inc. v. SEC, 11th Cir., No. 15-13738, supplemental authorities, 6/2/16 ; Hill v. SEC, 11th Cir., No. 15-12831, supplemental authorities, 6/2/16 )
The SEC has fought the constitutional claims in several venues. The the Seventh and D.C. Circuits, have held, like the Second Circuit, that the constitutional challenges can only be heard in federal court after the respondent receives an adverse ruling from both an SEC administrative law judge and the full commission (189 SLD 189, 9/30/15). While those cases turn on procedural timing, the agency also faces challenges from respondents whose penalties doled out by an ALJ have been affirmed by the commissioners, making the cases ripe for a constitutional attack.
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
For the Bennett letter, visit http://www.bloomberglaw.com/public/document/Dawn_J_Bennett_v_US_Securities_and_Exchange_Docket_No_1502584_4th/2
For the Gray Financial letter, visit http://www.bloomberglaw.com/public/document/Gray_Financial_Group_Inc_et_al_v_US_Securities_and_Exchange_Docke/3
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)