SEC Prevails Over Advisers’ Challenge to In-House Proceedings

Jan. 9, 2026, 8:20 PM UTC

A federal judge tossed a challenge brought against the SEC by a father and son who worked as investment advisers and allegedly defrauded clients, allowing the agency’s follow-up industry ban to move forward.

The US Supreme Court’s 2024 ruling in Securities and Exchange Commission v. Jarkesy held that defendants are entitled to a jury trial when the SEC seeks civil monetary penalties, but the Wall Street cop can still pursue “follow on” actions using administrative proceedings, Judge Christopher R. Cooper in the US District Court for the District of Columbia said in a Thursday ruling.

Michael and David Sztrom, ...

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