WASHINGTON, DC - Congressmen Warren Davidson (OH-08) and French Hill (AR-02) today introduced the Due Process Restoration Act, legislation that would provide defendants in SEC enforcement proceedings the option to litigate cases in a federal district court instead of in-house at the SEC. The U.S. Supreme Court recently ruled the SEC’s civil-service appointment of administrative law judges was unconstitutional.

 

“America was founded on pillars of freedom and fairness where no one person – especially a government bureaucrat – has the power of judge, jury, and executioner,” said Congressman Davidson. “As Americans, our right to a fair trial is as fundamental as our right to breathe. The SEC should focus its efforts on trying to convince independent judges in Article III courts instead of its own unconstitutional tribunals. I look forward to this bill swiftly making its way to President Trump’s desk and being signed into law.”

 

“Since passage of the flawed Dodd-Frank Act, the SEC’s use of in-house administrative judges has not been transparent or fair, creating an unequal playing field,” said Congressman Hill. “However, our Constitution was created to give the American people protections from the government. This includes the right to a jury trial for all civil penalties.”

 

The Due Process Restoration Act is supported by the U.S. Chamber of Commerce, American Securities Association, and the Securities Industry and Financial Markets Association.

 

Defendants should not have to go through SEC administrative courts before appealing to a federal district court. This is an expensive process. SEC administrative proceedings offer minimal due process protections and do not allow for a trial by jury option. These proceedings also offer limited access to government evidence and do not protect against unreliable evidence such as hearsay.

 

Cosponsors in the House include French Hill (AR-02), Jim Banks (IN-03), Kevin Hern (OK-01), Ralph Norman (SC-05), Doug Lamalfa (CA-01), and Bill Posey (FL-08).

 

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