Insider Trading and Other SEC Enforcement Claims
In the wake of the financial crisis, the SEC, under the Dodd-Frank Act, may now impose a civil penalty in an administrative proceeding against any person or company. Critics claim that the limited discovery, absence of right to a jury trial, and use of “in-house” administrative law judges raise constitutional and ethical questions concerning whether administrative proceedings are adequate forums for insider trading and other SEC enforcement claims. The Honorable Jed S. Rakoff, United States District Court (S.D.N.Y.), and a panel of experts and scholars, will discuss the legislative history behind the expansion of the SEC’s enforcement powers under the Dodd-Frank Act; the anatomy of an SEC administrative proceeding; compare and contrast an SEC enforcement claim being brought in a civil action in federal court with an SEC administrative proceeding.; and the implications of an SEC administrative proceeding on the subject of the SEC enforcement claim, the SEC’s enforcement efforts and, more broadly, the development of our common law system within the modern administrative state.