Kornfeld, Gabriel and Choi Author, "Administrative Proceedings Remain Likely for SEC Enforcement Actions," New York Law Journal

Articles / October 6, 2016

Partners Mark Kornfeld and Jessie Gabriel, and Associate David Choi, authored the article “Administrative Proceedings Remain Likely for SEC Enforcement Actions” for the New York Law Journal. In the article, published on September 21, the authors report increased scrutiny of the SEC’s practice of adjudicating enforcement actions in its own administrative courts, rather than in federal district courts. They reference a Wall Street Journal article that reported that when the SEC litigates in its own courts, it wins 90 percent of the time, compared to 69 percent in federal court. In evaluating the appropriateness of this practice, the authors discuss the enactment of Dodd-Frank, the constitutionality of the practice, the jurisdiction of the federal courts and efforts made to address concerns about this practice. In the conclusion, the authors explain that “although there is intensifying political effort to rein in the SEC's use of administrative proceedings, the current judicial climate heavily favors the SEC's continued use of its choice of forum.”

Read the article.

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