The Supreme Court ruled against the Securities and Exchange Commission’s use of in-house administrative courts, holding that defendants who face civil penalties must receive a jury trial under the Seventh Amendment of the Constitution.
“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator,” the majority opinion, authored by Chief Justice John Roberts, read. He added that investment adviser George Jarkesy, who brought the suit, and his firm “are entitled to a jury trial in an Article III court.”
The case, SEC v. Jarkesy, was one of several challenging the administrative state’s power in the 2023–2024 term. The agency penalized Mr. Jarkesy for violating securities fraud law. He challenged the courts for their lack of juries and for allegedly not receiving proper authorization from Congress….