The Punishment Is the Process

A new animated video released by the New Civil Liberties Alliance examines the impact of SEC’s Administrative Law Judges (ALJs) and in-house administrative proceedings. SEC’s ALJs wield extensive powers, which include, but are not limited to, supervising discovery; issuing, revoking, or modifying subpoenas; deciding motions; ruling on the admissibility of evidence; administering oaths; hearing and examining witnesses; and imposing severe sanctions. The targets of SEC administrative enforcement proceedings do not have the rights available to defendants in civil court proceedings. They lack rights to pretrial discovery, protections of evidentiary rules, and access to a jury trial. Given that SEC employees play judge, jury, and prosecutor, it is hardly surprising that the agency wins the vast majority of the cases it brings through administrative proceedings.