The Investor Choice Advocates Network (ICAN) has issued a statement pertaining to the US Supreme Court’s decision issued today regarding SEC v. Jarkesy. The Supreme Court has ruled that when the Securities and Exchange Commission seeks civil penalties against a defendant for securities fraud, the defendant is entitled to a jury trial. Typically before the ruling cases were adjudicated by administrative judges.
ICAN supported the Jarkesy in its legal battle by submitting an amicus brief. ICAN noted that prominent individuals like Mark Cuban and Elon Musk had also joined the brief.
ICAN stated that the activities by the SEC were unconstitutional and disproportionally impacted small business owners and investors as they are unable to afford an extended legal battle. Litigation with the SEC is costly and ICAN noted that the Commission had a nearly 100% win rate with its in house administrative judges. The ruling now allows a defendent to select the option of a jury trial.
Nick Morgan, President and founder of ICAN, said everyone should have a strong interest in the rights of all market participants to due process, including access to federal court juries.
“Small investors and entrepreneurs, a vital engine of the American economy, will avoid our capital markets if they believe the SEC will deprive them of due process.”
ICAN said the American legal system must adhere to a standard of due process and fairness in the capital markets. Protecting individual rights against abusive cases or inconsistent governmental actions is paramount in ensuring a fair and just legal process.
ICAN is a non-profit that advocates on behalf of both individuals and entities participating in capital markets. The group seeks to ensure that the principles of due process are upheld in all regulatory proceedings.
Related: Supreme Court Rules Defendents in SEC Civil Actions Entitled to Jury Trial