Jarkesy, Jr. v. SEC

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The SEC brought an administrative proceeding against George Jarkesy, Jr., for securities fraud. Meanwhile, Jarkesy filed this suit seeking the administrative proceeding's termination, arguing that the proceeding’s initiation and conduct infringe his constitutional rights. The district court dismissed for lack of subject matter jurisdiction, concluding that Congress, by establishing a detailed statutory scheme providing for an administrative proceeding before the Commission plus the prospect of judicial review in a court of appeals, implicitly precluded concurrent district-court jurisdiction over challenges like Jarkesy’s. In Thunder Basin Coal Co. v. Reich, the Supreme Court set forth a framework for determining when a statutory scheme of administrative and judicial review forecloses parallel district-court jurisdiction. Applying the considerations outlined in Thunder Basin and its progeny, the court found that Congress intended exclusivity when it established the statutory scheme. Consequently, instead of obtaining judicial review of his challenges to the Commission’s administrative proceeding now, Jarkesy can secure judicial review in a court of appeals when (and if) the proceeding culminates in a resolution against him. Accordingly, the court affirmed the judgment of the district court. View "Jarkesy, Jr. v. SEC" on Justia Law