Fairness of SEC Judges Is in Spotlight

A Wall Street Journal analysis revealed that the SEC won against 86% of defendants in contested cases in its own courts from October 2010 through September 2015 —significantly higher than the agency’s 70% win rate in federal court.  Accordingly to the WSJ, “administrative-law judges have long been a mainstay of the SEC’s law enforcement efforts. Traveling around the country to hear arguments in various courthouses and federal offices, they handle much of the SEC’s caseload, offering what agency officials call a faster but still fair alternative to federal court.” The WSJ further reported that “in September, the agency proposed an overhaul to its tribunal that would give defendants more legal protections, but many critics said the moves didn’t go far enough. Lawmakers, federal judges, business groups, former SEC officials and defense lawyers, have expressed concerns over the agency’s in-house court in recent months.”