American Entrepreneurs Support Challenge to SEC’s Administrative Proceedings
A group of prominent American entrepreneurs, including Elon Musk, Philip Goldstein, and Mark Cuban, have filed an amicus curiae brief in the ongoing case between the US Securities and Exchange Commission (SEC) and George Jarkesy Jr. Their appeal to the Supreme Court argues that the SEC’s insistence on administrative proceedings instead of federal court juries goes against its mission and harms investors and markets.
The entrepreneurs claim that the current system gives the SEC an unfair advantage over defendants. Jarkesy, who managed two hedge funds worth $24 million, was charged with defrauding investors. He protested against the SEC’s actions, arguing that they violated his right to a trial by jury under the Seventh Amendment.
In 2020, after multiple proceedings, the commission upheld the verdict. However, new evidence surfaced in May 2022, leading the US Court of Appeals for the Fifth Circuit to rule in favor of Jarkesy and restore his seventh amendment rights. The Department of Justice has appealed this decision, and it is expected to be heard by the Supreme Court in November 2023.
Hot Take: American Entrepreneurs Advocate for Fairness in SEC Cases
A group of well-known American entrepreneurs, including Elon Musk and Mark Cuban, are backing George Jarkesy Jr.’s challenge against the SEC’s administrative proceedings. They argue that these proceedings give the SEC an unfair advantage over defendants and undermine its mission to protect investors and markets.
Jarkesy, who was accused of defrauding investors through his hedge funds, filed a protest claiming that his right to a trial by jury was violated. After several legal battles, the US Court of Appeals for the Fifth Circuit ruled in his favor and restored his seventh amendment rights. However, the Department of Justice has appealed this decision, and it will be reviewed by the Supreme Court in November 2023.
This case raises important questions about the SEC’s handling of administrative cases and whether defendants are being treated fairly. It also highlights the growing concern among entrepreneurs about the SEC’s power and influence. The outcome of this Supreme Court hearing could have significant implications for future SEC cases and the rights of individuals accused of securities fraud.
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