Finra Sanctions Upheld Against Consultant Seeking Jury Trial

A financial consulting firm owner isn’t entitled to a jury trial to contest the SEC’s consideration of Finra-imposed sanctions, the Sixth Circuit ruled Friday on procedural grounds.

The ruling is a win of sorts for the Financial Industry Regulatory Authority, which imposed a securities industry ban and $130,000 in restitution on Eric Smith, and for the Securities and Exchange Commission, which sustained those sanctions. Smith brought his challenge to the US Court of Appeals for the Sixth Circuit based on the US Supreme Court’s June 2024 decision in SEC v. Jarkesy holding that defendants in SEC enforcement cases have a ...