[gzer0]

Summary:

  * SEC's in-house judges violate U.S. Constitution by denying fraud defendants their right to a jury trial and acting without necessary guidance from Congress

  * The court ruled 2-1 in favor of hedge fund manager George Jarkesy Jr and investment advisor Patriot28 LLC, overturning an SEC administrative law judge's determination that they committed securities fraud.

  * Davis also split from the majority's holding that SEC judges are unconstitutionally protected from being fired.

One thing to note is that SEC judges are considered ALJs (administrative law judges) and are "Inferior Officers of the United States”[2] within the meaning of the Constitution’s Appointments Clause [1].

Currently, ALJs can only be removed for cause, and the only people who can remove them are SEC Commissioners and Merit Systems Protection Board members [3].

[1] https://www.gibsondunn.com/supreme-court-rules-that-sec-aljs...

[2] https://en.wikipedia.org/wiki/Administrative_law_judge

[3] https://nclalegal.org/2021/01/u-s-supreme-court-will-not-hea...