Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Challenger to SEC Judge System Asks Appeals Court to Reconsider

Sept. 25, 2020, 12:17 AM

An accountant facing a Securities and Exchange Commission enforcement action asked the entire Fifth Circuit to reconsider her constitutional challenge against the agency Thursday, after a three-judge panel said the federal courts don’t have jurisdiction over her claim.

The SEC began an administrative proceeding against Michelle Cochran for allegedly failing to comply with auditing standards under federal securities law. Cochran sued in federal district court, arguing that the SEC was violating separation-of-powers principles because the administrative law judge conducting the proceeding is insulated from control by the President by multiple layers of for-cause restrictions on removal.

A legally mandated review ...