Oral argument audio (including transcript) of case
[22-859] *Securities and Exchange Commission v. Jarkesy*
argued at the Supreme Court of the United States on Nov 29, 2023.
*More information about the case:*
Justia: [ Ссылка ] (including opinion)
Docket: [ Ссылка ]
Oyez.org: [ Ссылка ]
Video produced based on information and transcripts on oyez.org, licensed under a CC-BY-NC License ([ Ссылка ]).
Not affiliated with oyez.org or the Supreme Court.
Argued on Nov 29, 2023.
*Petitioner:* Securities and Exchange Commission
*Respondent:* George R. Jarkesy, Jr., et al.
*Advocates:*
- Brian H. Fletcher (for the Petitioner)
- S. Michael McColloch (for the Respondents)
*Chapters*
0:00:00 Brian H. Fletcher
1:12:08 S. Michael McColloch
2:11:42 Rebuttal: Brian H. Fletcher
*Facts of the case (from oyez.org)*
George Jarkesy established two hedge funds, with Patriot28 as the investment adviser, managing $24 million in assets from over 100 investors. The SEC initiated an investigation in 2011, eventually bringing an in-house action alleging fraud under multiple acts. Jarkesy challenged the SEC’s proceedings in the U.S. District Court for the District of Columbia, citing constitutional infringements, but both the district court and the U.S. Court of Appeals for the D.C. Circuit denied the injunction, finding that the district court lacked jurisdiction.
After an evidentiary hearing by an Administrative Law Judge (ALJ), Jarkesy was found guilty of securities fraud. Jarkesy sought review by the Commission, and while that petition was pending, the U.S. Supreme Court decided Lucia v. SEC, holding that SEC ALJs were improperly appointed. Jarkesy, however, waived his right to a new hearing. The Commission affirmed the fraud findings, imposed penalties, and rejected several constitutional arguments. He then filed a petition for review in the U.S. Court of Appeals for the Fifth Circuit, which reversed and remanded, finding multiple constitutional violations.
*Question*
Does the statutory scheme that empowers the Securities and Exchange Commission violate the Seventh Amendment, the nondelegation doctrine, or Article II of the U.S. Constitution?
