IRONRIDGE

[factcheck14]

Federal Judge Halts Another SEC Administrative Proceeding on Constitutionality Concerns

http://www.finalternatives.com/node/32129

A U.S. District Court judge in Georgia has granted another preliminary injunction against the SEC’s use of administrative proceedings.

Judge Leigh Martin May agreed to pause an SEC enforcement action against Ironridge Global Partners LLC on the basis that the agency’s use of an in-house court system that hires its own judges is likely unconstitutional under the Appointments Clause of the U.S. Constitution.

Decisions in other federal jurisdictions have reached similar conclusions, halting or delaying several SEC enforcement cases, including high-profile cases against Patriarch Partners founder Lynne Tilton and former Standard & Poors executive Barbara Duka.