Trump Administration Switches Sides on Challenge to SEC Judges

  • Administration will no longer defend how they are appointed
  • Filing urges Supreme Court to hear investment adviser’s appeal

The Trump administration switched sides in a clash that could upend the Securities and Exchange Commission’s hearing process, telling the U.S. Supreme Court that agency judges were appointed in violation of the Constitution.

In a legal filing Wednesday, the administration said it would no longer defend a federal appeals court decision that upheld the commission’s use of in-house judges.

U.S. Solicitor General Noel Francisco said SEC judges are “officers,” rather than employees, making them subject to constitutional requirements about how they can be appointed. Francisco urged the high court to hear an appeal from Raymond Lucia, an investment adviser fighting a finding that he misled prospective clients.

Read on.

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