Justices Pass on Muni Bond Traders’ Challenge to SEC Penalties

Oct. 30, 2023, 1:41 PM UTC

The US Supreme Court Monday declined to review how penalties are imposed in Securities and Exchange Commission enforcement cases, rejecting a challenge from municipal bond traders who argue the process is chaos.

The case was brought by three traders accused by the SEC of taking part in a long-running scheme to circumvent municipal bond order priority. A lower court ordered the traders to pay civil penalties ranging from $309,000 to $1.76 million.

The traders argue there is a lack of consistency in calculating penalties in SEC enforcement cases. While securities laws cap penalty amounts for a violation, the SEC has ...

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