Tough Questions for Both Sides As 7th Cir. Hears Challenge to SEC Forum

The Seventh Circuit June 4 heard a constitutional challenge to the SEC’s use of administrative proceedings in enforcement cases and the three-judge panel took a skeptical tone toward both sides’ arguments (Bebo v. SEC, 7th Cir., 15-1511, oral argument 6/4/15).

After the agency brought an administrative case against her, former assisted living executive Laurie Bebo sued the Securities and Exchange Commission in federal court and argued that the forum violates her constitutional rights to due process and equal protection 47 SRLR 57, 1/12/15, 04 SLD, 1/7/15, 04 DER EE-9, 1/7/15.

The U.S. District Court for the ...