Elon Musk and Mark Cuban File Amicus Brief in Support of George Jarkesy
High-profile individuals Elon Musk and Mark Cuban have joined forces to file an amicus brief in support of George Jarkesy in the case of SEC v. Jarkesy. They argue that the current administrative proceedings at the Securities and Exchange Commission (SEC) are unfair and infringe upon defendants’ right to jury trials.
The Constitutional Concerns Surrounding In-House Judges
The main issue at hand is the use of in-house judges by the SEC, which raises constitutional concerns. George Jarkesy claims that the SEC’s internal adjudication process, overseen by commission-appointed administrative law judges, violates his rights under the Seventh Amendment. Essentially, it denies him a fair trial by allowing judges to act as judge, jury, and executioner.
Elon Musk’s Involvement in the Case
Elon Musk, CEO of X (formerly known as Twitter), is currently facing his third significant case against the SEC. This particular case focuses on his purchase of Twitter and the public statements made during the acquisition.
A Pattern of Shifting Cases to Internal Proceedings
The amicus brief points out a pattern between 2013 and 2014 where the SEC shifted more cases from federal courts to internal proceedings. This change was prompted by several jury trial losses in insider trading cases. The brief highlights this shift as a cause for concern.
The Supreme Court’s Role
The Supreme Court is scheduled to hear the Biden administration’s appeal on November 29. If the Jarkesy decision is not overturned, it could have significant implications across the federal government. The outcome of this case will shape SEC enforcement and defendants’ rights in administrative proceedings.
SEC’s Admission of Improper Access
In April 2022, the SEC admitted that its employees had improper access to privileged materials intended for the Commissioners but inaccessible to enforcement staff in administrative proceedings. This admission further strengthens Jarkesy’s argument that his right to a fair trial was violated.
Musk and Cuban’s Call for Supreme Court Support
Elon Musk and Mark Cuban are urging the Supreme Court to support the 5th Circuit’s decision and reverse its order of remand to the Commission. Their involvement in this high-stakes legal battle could have far-reaching implications for SEC enforcement and defendants’ rights in administrative proceedings.
Hot Take: Elon Musk and Mark Cuban Join Forces in Support of Fair Trials
In a significant development, Elon Musk and Mark Cuban have teamed up to advocate for fair trials in the case of SEC v. Jarkesy. They argue that the current administrative proceedings at the SEC infringe upon defendants’ rights and deny them a fair trial by jury. The use of in-house judges is a key concern, as it allows judges to act as both judge and jury. This case has caught the attention of the Supreme Court, which will hear the Biden administration’s appeal. Musk and Cuban highlight the SEC’s admission of improper access to privileged documents as further evidence of unfair practices. Their involvement in this legal battle could shape the future of SEC enforcement and defendants’ rights in administrative proceedings.
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