Federal Judge Rules SEC In-House Judge’s Appointment ‘Likely Unconstitutional’

[MachineGhost]

[quote=http://www.wsj.com/articles/federal-jud ... 1433796161]The decision is the first by a federal judge to find the SEC’s in-house tribunal could breach the Constitution. Previous constitutional challenges to the SEC’s system of judges, based on different legal arguments, have been inconclusive or unsuccessful.

An SEC spokesman said the agency is “reviewing the decision.” SEC officials have repeatedly said their system of in-house judges is fair for defendants, as well as faster and more efficient than the federal courts.

Stephen Hudson, a lawyer representing Mr. Hill, said he was pleased “the court recognized one of the many defects underlying the administrative proceeding in which the SEC has forced Mr. Hill to defend himself.”

If Judge May’s initial finding is upheld by other courts, it could have significant repercussions for the SEC.

A ruling against the agency “would affect the use of ALJs by not only the SEC but some other agencies as well,” said Kent Barnett, an assistant professor of law at the University of Georgia and administrative-law expert. There are hundreds of administrative judges spread across more than two dozen government agencies. [/quote]

[Libertarian666]

I think having the judicial branch handle judicial functions would be a big improvement.