The Supreme Court strips the SEC of a critical enforcement tool in fraud cases

Associated Press

WASHINGTON (AP) — The Supreme Court has stripped the Securities and Exchange Commission of a major tool in fighting securities fraud in a decision that also could have far-reaching effects on other regulatory agencies. The justices ruled Thursday in a 6-3 vote that people accused by the SEC of fraud have the right to a jury trial in federal court. The court says the in-house proceedings the SEC has used in some civil fraud complaints violate the Constitution. The justices ruled in the case of a Houston hedge fund manager. The case is among several this term in which conservative and business interests are urging the court to rein in federal regulators.