SEC’s Use of In-House Judges Cast in Doubt by Supreme Court (2)

The US Supreme Court’s conservative majority cast doubt on the Securities and Exchange Commission’s use of in-house judges, hearing arguments in a case that could strip the agency of a key enforcement tool.

In a session that lasted more than two hours Wednesday, the justices suggested that people accused of fraud by the SEC have a constitutional right to go before a federal court jury, at least when the commission is seeking civil penalties.

It “seems problematic to say the government can deprive you of your property, your money, substantial sums in a tribunal that is at least perceived ...